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The goal is to describe a source of inefficiency/deadweight loss in the society.
The goal is to describe a source of inefficiency/deadweight loss in the society. Externalities suchas pollution, smoke, education, vaccines, noise give rise to market failures and are associated, therefore,with deadweight losses. Monopolies and oligopolies, by raising prices above the marginal cost are also asource of inefficiency. Markets subject to problems of risk and private information (the labour, insurance orprivate health markets) are also frequently an example of an inefficient utilization of resources. Whenselecting the topic, choose something that attracts your attention. international news from financial andmacroeconomic markets are as valid as daily life examples. Important: try to be original!!
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