Section 2: The effects of the market

• Economie
• Middelbare school
• vwo
• Leerjaar 3

Programme

atualities and a new concept. 

concepts of distortions in markets 

Standard of living

The degree to which people are capable of satisfying their need for scarce products and services. 

You saw a video in the intro. Can you tell me the difference of the living standard between that country and the Netherlands

External efects

A side -effect of the market (consequence of the supply or demand for which nobody pays.)

Could be both positive and negative.

Name one positive external effect and one negative effect

Effects are part of the price

these effects are not part of the price

Inflation

Earthquickes in the value of houses in Groningen 

fresh clean air 

taxes 

What negative and positive side effects could you recognize/ imagine

What should be good policies to reduce the negative external effect?

Government intervention

Tries to limit negative external effects by letting people pay. The user pays (= de gebruiker betaalt). 

What have you learnt this lesson?

Homework

read section 2

Exercise 3, 4, 5, 6, 7, 9 (page 157 to 161).

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