Basic arithmetic and comfort interpreting a graph are useful. Follow the assumptions of each model rather than treating every simplified example as a real-world prediction.
About this course
A transaction can affect people outside the transaction. This focused course examines positive and negative externalities, corrective taxes and the tragedy of the commons. Study the complete public source playlist from Khan Academy in English, with all 4 recordings available in the on-site classroom. Lessons retain their original titles and source order, including worked examples, introductions and repeated entries.
Course at a glance
| Provider / Teaching team | Khan Academy |
|---|---|
| Platform | YouTube · Khan Academy |
| Access | Free Video |
| Level | Beginner |
| Language | English |
| Videos | 4 |
| Video duration | 25m · allow extra time for practice |
| Format | Self-paced recorded training |
| Certificate | Not included with video viewing |
What you’ll learn
- Identify benefits and costs affecting third parties.
- Distinguish positive from negative externalities.
- Explain the corrective-tax mechanism shown in the lessons.
- Analyze incentives in a shared-resource problem.
Skills you’ll gain
- Externalities
- Private incentives
- Corrective taxes
- Common resources
Course Overview
The four recordings form a compact sequence on the gap between private incentives and wider effects. Positive-externality examples consider benefits not fully captured by the individual decision-maker, while negative-externality examples consider costs imposed on others. Corrective taxation is introduced as a model-based way to bring an external cost into a private decision. The commons example examines the incentives created when several users draw on a shared resource. This is a bounded introduction to externalities and common-resource problems, not a complete survey of every market failure or public-policy instrument. Keep the affected parties and the direction of the spillover explicit. The crucial reasoning step is identifying what the private calculation omits before discussing whether a proposed intervention addresses that omission.
How to study the course
- Videos 1–1: this part of the source list includes “Tragedy of the commons” through “Tragedy of the commons”. List the assumptions of the model. Keep a brief working note, revisit an unclear explanation and test one example before moving to another part of the material.
- Videos 2–2: this part of the source list includes “Positive externalities” through “Positive externalities”. Identify the participants and incentives. Keep a brief working note, revisit an unclear explanation and test one example before moving to another part of the material.
- Videos 3–3: this part of the source list includes “Taxes for factoring in negative externalities” through “Taxes for factoring in negative externalities”. Compare outcomes after one defined change. Keep a brief working note, revisit an unclear explanation and test one example before moving to another part of the material.
- Videos 4–4: this part of the source list includes “Negative externalities” through “Negative externalities”. Explain a mechanism before making a conclusion. Keep a brief working note, revisit an unclear explanation and test one example before moving to another part of the material.
Who is this for?
This course suits students and interested readers studying the named economic concepts. It also provides a recorded reference for revisiting a topic after an earlier lesson or study attempt. Choose examples appropriate to your background and allow time to work through the method instead of judging understanding only by how familiar the terminology sounds.
Before you start
Basic arithmetic and comfort interpreting a graph are useful. Follow the assumptions of each model rather than treating every simplified example as a real-world prediction.
Put the lessons into practice
Describe a fictional production activity with a cost borne by neighboring users. List private costs separately from the external effect, then explain how a corrective tax changes the decision in the simplified model. Build a second example involving a shared resource and compare individually attractive behavior with the collective result. Identify the information needed to assess a real intervention.
This optional study activity is provided by WikiFree for independent practice. Keep your working notes and use the relevant classroom recording to check a step, definition or interpretation. It is not an instructor-marked assignment.
Certificate / Assessment
Watching the public videos and using WikiFree completion tracking does not award a certificate, academic credit, an examination voucher or instructor assessment. Use your practice output to review what you can explain and repeat independently. The recorded lessons provide study material; completion tracking records your progress through that material.
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Beginner
Compare course focus, level and study time
| Course | Level | Focus | Study time |
|---|---|---|---|
| This course — Externalities and Market Failure: Free Course | Beginner | Externalities · Private incentives · Corrective taxes | 25m of video; practice time is additional |
| Supply, Demand and Market Equilibrium: Free Course | Beginner | Market equilibrium · Elasticity · Economic surplus | 3h 6m of video; practice time is additional |
| Microeconomics Fundamentals: Free Course | Beginner | Opportunity cost · Economic models · Marginal reasoning | 1h 3m of video; practice time is additional |
| Firm Behavior and Market Structures: Free Course | Beginner | Market structures · Economic profit · Monopoly | 2h 3m of video; practice time is additional |
Frequently asked questions
Is this course free to watch?
Yes. The public source videos are available in the WikiFree classroom. Video viewing does not include separately priced tools, hardware, memberships or a credential.
How long does the course take?
The 4 source video occurrences total approximately 25m. Allow additional time for pausing, notes, practice and revisiting an explanation.
What background do I need?
Basic arithmetic and comfort interpreting a graph are useful. Follow the assumptions of each model rather than treating every simplified example as a real-world prediction.
Does completing the videos award a certificate?
No. Video viewing and WikiFree progress tracking do not award a certificate, academic credit or an exam voucher.
Can I study on a phone?
Yes. The classroom supports a responsive player and searchable lesson list. A larger screen or a suitable practice environment can help with detailed calculations, diagrams and software examples.
Provider: Khan Academy. Videos play from the Khan Academy channel on YouTube.
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