Refer to table 10.1 from page 160 ch.10 Market Failures
PART 1.
INTRODUCTION: This activity forces us to consider the fragility of some of the every
day things in our lives. By assigning certain qualities to each resource you can come to
better appreciate their role in the market and the value of each.
Below is a blank table featuring rival/non-rival and excludable/non-excludable qualities with a
list of resources below it. The student will have to place each resource into the correct quadrant
AFTER reading, reviewing, and gathering a clear understanding of the characteristics of
resources (rival, non-rival, congestible, excludable, non-excludable, stock-flow & fund-service).
NOTE: each quadrant will have 2 resources
Rival
Non-Rival
Excludable
Non-Excludable
Resources
Green Space
Patented Information & Technology
NYC Housing
Food
County Club Membership
Sunshine
Climate Stability
Air Quality
ANSWER KEY:
Rival
Non-Rival
Excludable
Housing in NYC & food
Non-Excludable
green space
Country Club Memberships
& Patented information
Air quality, climate stability
& sunshine
PART 2
.
When too many people use a non-rival resource, it lowers the quality of the service for everybody.
This is called contestability. Choose which resources listed above can become congested, and
explain why.
ANSWER KEY:
Country Club Memberships: Once the country club has reached capacity, more members would
start to crowd the golf course and swimming pool. This would result in members choosing to
leave, since the quality of the experience they get from belonging to the club has diminished.
Climate Stability: Our climate allows life on Earth to exist. However, with pollution from
processes of production, the services that ecosystems provide cause the climate to become
unstable.
Sunshine: The sun’s rays are free for anyone who wants to be outside on a sunny day. If too
many people want to pick up those rays at the same location, such as a beach, the quality of the
rays that people will be receiving will be diminished. Ex: If someone is lying on a beach towel, a
crowd around them could block their sun.
Air Quality: If you are in a small room with adequate ventilation, the air quality remains good
until more people than the capacity can hold fill the room. At this point, the room gets stuffy and
the air quality diminishes because too many people are competing for the same air.
WATCH VIDEO: This video shows a great example of contestability at a beach in Goa, India.
http://www.youtube.com/watch?v=Qrsv3zx_jao
http://www.google.com/search?ie=UTF-8&oe=UTF-8&sourceid=navclient&gfns=1&q=clouds
PART 3
Now decide whether each resource listed is stock-flow or fund-service.
Stock-flow
Fund-service
Resources: Housing in NYC, food, patented information/technology, country club memberships,
sunshine, climate stability, air quality, green space.
Stock-flow
Food
Fund-service
Climate stability, sunshine, patented
information, green space, air quality,
country club membership, housing in NYC
ANSWER KEY:
http://images.google.com/images?um=1&hl=en&q=climate+change&btnG=Search+Images
WATCH VIDEO: This video shows a simple example of stock-flow and fund-service.
The popcorn popper is the fund-service and the popcorn is the stock-flow.
http://www.youtube.com/watch?v=iJBW3RKrKeE&feature=related
INTRODUCTION: This puzzle will help you become more familiar with some of the
key terms introduced throughout this lesson.
DO CROSSWORD: Solve this crossword using fund-service and stock-flow resources.
The horizontal clues are stock-flow and the vertical clues are fund-service.
NOTE: The boxes of this crossword are not numbered. However, when looking at the
puzzle, the first clue for the horizontal coincides with the topmost blank horizontal word
and so on to the bottom of the puzzle. The first vertical clue coincides with the blank
vertical word farthest to the left and so on to the right of the puzzle.
http://puzzles.puzzled.com/crossword/puzzles/puzzle1203557596.html