What is market failure? Why is it a problem, and what’s the solution?

For the past four years, social science teacher Breanne Wymore has addressed this topic twice a year by assigning her senior-level economics students a interactive market failure project. The results have been creative and fun, as opposed to written essays, “which can be really dry,” says the El Dorado Union High School District Faculty Association member.

“It’s a mix between a PSA and an infomercial,” says Wymore of the projects. “Since kids choose something they are passionate about, I get widely different topics each semester, some on super serious topics like pollution, mental health services, cost of college or the teacher shortages [as well as] light-hearted topics like homework.”

Slides from the gum presentation: “A perfect example of a market failure. They do a great job of explaining the economics and seemed to have fun with it.”

In economics, market failure is a situation defined by an inefficient distribution of goods and services in the free market. “Students have to convince me there is a problem – and then present a ‘there’s got to be a better way’ part – a way to solve the problem.” One innovative presentation focused on the environmental and financial costs of chewing gum litter. The solution? Government subsidizes production of biodegradable gum, with higher taxes on the production of non-biodegradable gum.

Students are expected to use economics vocabulary and show a proper supply and demand graph. “The purpose is to get the kids to think

critically, look at solutions and get a voice to talk about issues in which they have a passion,” Wymore says.

At right, excerpts from a few student examples, with Wymore’s commentary