An explanation of the causes of market failure and possible governmental responses to such failure.

Pollution is an example of a negative externality. Despite the gradual reduction in emissions from fossil fuels, many important environmental issues remain. Along with the still-high levels of air and water pollution, other issues...

Innovation often benefits many people, not just the person or company that innovated.

Economic concepts are often found in places students have never considered, like children's literature. In this lesson, students will explore the various economic concepts addressed in five of Dr. Seuss' most popular books: The Cat in...

This site examines how society can benefit by producing and consuming more of a product that causes a positive externality.

Let's look at some real examples of public goods.

This article deals with global warming and its possible consequences on climate and terrestrial ecosystems.

Not everybody who benefits from a public good contributes to its creation or maintenance. Learn about free riders.