Albany Senior High School/economics/level3/as3.3
Achievement Standard 3.3 - 90631
Please find a copy of Achievement Standard 3.3
– define and give examples of positive and negative externalities
– understand the significance of property rights
– derive social marginal cost curves and social marginal benefit curves.
– explain how subsidies, taxes, regulations, property rights and public provision can be used to internalise positive and negative externalities.
• Merit/demerit goods
– distinguish between social and private preferences for certain goods
– give examples of merit and demerit goods.
– explain alternative means of increasing (decreasing) the consumption of merit (demerit) goods.
• Public goods
– distinguish between public goods and private goods
– identify examples of public goods
– explain why public goods are not normally provided by the market.
– discuss the collective provision of public goods.
• Natural monopolies
– identify examples of natural monopolies
– explain how economies of scale can lead to natural monopolies
– discuss reasons why natural monopolies may or may not operate for the good of society.
– demonstrate how natural monopolies can be influenced by the use of subsidies, regulations or public ownership.
• Income distribution
– distinguish between equity and equality
– explain why the free market solution is not always equitable.
– identify the means by which the state can attempt to achieve equity
– show how governments may intervene for equity at the cost of efficiency and discuss the equity/efficiency trade off.