Market failure and equity
| English | 中文 | Pinyin · 拼音 |
|---|---|---|
| common-access resource/ˈkɒmən ˈækses rɪˈzɔːs/ | 公共资源 | gōng gòng zī yuán |
| equity/ˈekwɪti/ | 公平 | gōng píng |
A decision you can investigate
- A fishing ground is open to many boats. Each boat gains from its own catch while reducing stocks for all.
- Access rules and resource renewal affect the result.
Build the explanation
- A common-access resource 公共资源 is rival and non-excludable. A public good is non-rival and non-excludable.
- For a negative production externality, MSC exceeds MPC, and the market may produce more than the socially efficient quantity.
Match the terms to their precise meanings.
Use these definitions in the particular context of Market failure and equity.
Work through the evidence
- A catch limit may protect renewal if monitoring is effective. Tradable permits can let lower-cost users adjust more.
- Judge each response using fish-stock evidence, enforcement, livelihoods and distribution of access.
Which description fits the shared fishing stock?
A catch limit may protect renewal if monitoring is effective. Tradable permits can let lower-cost users adjust more. Judge each response using fish-stock evidence, enforcement, livelihoods and distribution of access.
Test the limits
- Common resources and public goods are not interchangeable.
- An efficient policy can still place heavier burdens on low-income groups; equity 公平 needs a separate argument.
Which caution belongs to this particular task?
Common resources and public goods are not interchangeable. An efficient policy can still place heavier burdens on low-income groups; equity needs a separate argument.
The explanation in this lesson makes a conditional claim; relevant context and evidence still matter.
An efficient policy can still place heavier burdens on low-income groups; equity needs a separate argument.
Apply and explain your answer
- Which description fits the shared fishing stock?
- Rival and difficult to exclude users from: a common-access resource.
Choose the two statements supported by this lesson.
The concept and worked evidence support these claims; the stated limits rule out the universal shortcut.
Use the terms precisely
- common-access resource: A resource that is rival and non-excludable.
- equity: Fairness in the distribution of outcomes or opportunities.
A catch limit may protect renewal if monitoring is effective. Tradable permits can let lower-cost users adjust more. Judge each response using fish-stock evidence, enforcement, livelihoods and distribution of access.
Common resources and public goods are not interchangeable. An efficient policy can still place heavier burdens on low-income groups; equity needs a separate argument.
A common-access resource is rival and non-excludable. A public good is non-rival and non-excludable.