This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.

Specification:

  • Market failure, government intervention and government failure

Click to watch the short video below and then answer the questions:

  • Draw an externalities diagram related to the farming industry

  • What policies could a government introduce to deal with the negative externalities of production of farming?

  • Using the video, explain some of the problems a government will face when trying to correct the market failure

  • In what respects might the private sector be better at solving problems like Rabobank than a national government?

Gavin Simpson and Pete Clift, Economics In Ten podcast

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