AP Microeconomics Unit 6 — Market Failure and the Role of Government
Unit 6 examines situations where free markets fail to produce efficient outcomes and how government intervention can improve efficiency. Students study externalities, public goods, income distribution, and policy tools such as taxes, subsidies, and regulation. These topics are frequently tested on the AP exam through graph-based multiple-choice and free-response questions requiring clear economic reasoning.
This bundle is designed to help students master externality graphs and policy analysis, focusing on the relationships between marginal social benefit (MSB), marginal social cost (MSC), and market outcomes. Practice materials emphasize accurate graphing, correct labeling, and AP-style explanations aligned with official scoring expectations.
What’s included:
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1 Key Concept Sheet summarizing market failure and government intervention
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1 Definition Sheet with AP-accurate terminology
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Externality Graph Tutorial (positive and negative externalities, MSB, MSC, efficiency)
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AP-style Multiple-Choice Questions with answer key
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2 Free-Response Question Sets with scoring guidelines
This unit strengthens students’ ability to evaluate efficiency and policy effectiveness and prepares them for some of the most analytically demanding questions on the AP Microeconomics exam.





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