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AP Microeconomics›Unit 6: Market Failure and the Role of Government›Market Failure and the Role of Government

Externalities

Pollution and education affect third parties, so markets over- or under-produce them.

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Unit 6: Market Failure and the Role of Government

Externalities
Public Goods and Income Inequality

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Public Goods and Income Inequality

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Also called: externalities, negative externality, positive externality