Government's Role in Market Viability Competency Statement: Students will demonstrate an understanding of the government's role in market viability by analyzing socially efficient and inefficient market outcomes, summarizing externalities, explaining regulation of monopolies and describing the effects of government intervention in market structures. Explain what the competency statement means in your own words. 1. Analyze social inefficiency and the government's relationship to social efficiency. 2. Summarize the solutions that are available to the government to respond to persistent externalities. 3. Explain the difference between private goods and public goods. 4. Explain monopoly regulations and the root cause of market failure. 5. Describe the differences between regressive, proportional, and progressive taxes. Which do you think we should implement? Support your opinion with information from the lesson