Episode 55 of 60 · Financial Literacy: Cash Course
Is Market Failure an Option?
Grades 6th+
Economics · Geography — Economics & Financial Literacy · Economics — Economics & Financial Literacy · Financial Literacy · Economics — Contemporary World Issues · Economics — American Government · Government · Captions
About This Video
When markets work, everyone wins. But what happens when they don't? In this episode of Cash Course, teens learn about market failures—when missing information or outside factors prevent markets from delivering goods and services efficiently. From overproduction to supply and demand breakdowns, students will explore how markets can misfire and why that often leads to government stepping in.
Standards Met in Ohio
- 6.E.15Grades 6thThe interaction of supply and demand, influenced by competition, helps to determine price in a market. This interaction also determines the quantities of outputs produced and the quantities of productive resources (entrepreneurship, human resources, natural resources and capital) used.
- 9-12.EFL.5Grades 9th, 10th, 11th, 12thMarkets exist when consumers and producers interact. When supply or demand changes, market prices adjust. Those adjustments send signals and provide incentives to consumers and producers to change their own decisions.
- AMG.9-12.20.lp.bGrades 9th, 10th, 11th, 12thUnderstand that the federal government can raise or lower taxes to impact the economy. For instance, raising taxes will increase the cost of goods and services, eventually making purchases more expensive for consumers.
- CWI.9-12.20.lp.aGrades 9th, 10th, 11th, 12thIdentify a trade agreement as two or more countries agreeing on terms (e.g., the tariffs or taxes on goods) that helps them trade with each other.
- EFL.9-12.3.cGrades 9th, 10th, 11th, 12thDistinguish between goods and services.
- EFL.9-12.4.lp.dGrades 9th, 10th, 11th, 12thUnderstand that a market economic system uses individual choices of buyers and sellers to distribute resources through supply and demand.
- EFL.9-12.5Grades 9th, 10th, 11th, 12thMarkets exist when consumers and producers interact. When supply or demand changes, market prices adjust. Those adjustments send signals and provide incentives to consumers and producers to change their own decisions.
- EFL.9-12.9.lp.dGrades 9th, 10th, 11th, 12thSort goods and services.
- SS.6.15Grades 6thThe interaction of supply and demand, influenced by competition, helps to determine price in a market. This interaction also determines the quantities of outputs produced and the quantities of productive resources (e.g., entrepreneurship, human resources, natural resources, capital) used.