Market Failures and Efficiency in the Principles Course


Publication: Journal of Economic Education

Volume: Volume 30, No. 4

Issue: Fall 1999

Pages: 411-419

Author(s): Janusz Mrozek (Georgia Institute of Technology)

Address (Principal Author):Janusz R. Mrozek, Assistant Professor, School of Economics, Georgia Institute of Technology, Atlanta, GA 30332-0615, 404-894-0353, fax: 404-894-1890

Internet Address (Principal Author):janusz.mrozek@econ.gatech.edu

Title: Market Failures and Efficiency in the Principles Course

Abstract: The article proposes that all market failures be explained as situations where private decisions deviate from an efficiency decision rule. Repetition of the efficiency decision rule framework reinforces basic concepts and emphasizes the normative foundation underlying the analysis of market failure.

Key Words:market failure, efficiency, economic pedagogy, principles of economics

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