a)Basic concepts:the first fundamental theorem of welfare economics; b)Key points:the connotation and proof of the first fundamental theorem of welfare economics;utility possibility curve;social welfare function. 3)Questions and application In order to maximize social welfare,is it necessary for the government to directly intervene in the market?Why? Section 4 Market Failure and the Reference to Welfare Economics 1)Main Content a)market failure b)buying into Welfare Economics 2)Basic concepts and key points a)Basic concepts:market failure;market power;monopoly;asymmetric information:externality;merit good; b)Key points:two reasons for market failure:the nonexistence of market power and markets;vigorous debates and reference on welfare economics. 3)Questions and application How much of the national output should be used in the public sector? c.Reflections and Application In his commencement address at Wesleyan university in 2008,then-senator Barack Obama told the students that"Our individual salvation depends on collective salvation."Is this view consistent with the social welfare function defined in the Equation 3.10? d.Teaching Method and Pedagogy Multimedia technologies and network platform will be used in the process of lectures.There are also some class discussions about related topics and cases. Chapter 4 PUBLIC GOODS a.Objectives and requirements 1)Master the definition and types of public goods 2)Master the demand curve of public goods 3)Be familiar with the characteristics of public goods supply and productiona) Basic concepts: the first fundamental theorem of welfare economics; b) Key points: the connotation and proof of the first fundamental theorem of welfare economics; utility possibility curve; social welfare function. 3) Questions and application In order to maximize social welfare, is it necessary for the government to directly intervene in the market? Why? Section 4 Market Failure and the Reference to Welfare Economics 1) Main Content a) market failure; b) buying into Welfare Economics 2) Basic concepts and key points a) Basic concepts: market failure; market power; monopoly; asymmetric information ; externality; merit good; b) Key points: two reasons for market failure: the nonexistence of market power and markets; vigorous debates and reference on welfare economics. 3) Questions and application How much of the national output should be used in the public sector? c.Reflections and Application In his commencement address at Wesleyan university in 2008, then-senator Barack Obama told the students that “Our individual salvation depends on collective salvation.” Is this view consistent with the social welfare function defined in the Equation 3.10? d.Teaching Method and Pedagogy Multimedia technologies and network platform will be used in the process of lectures. There are also some class discussions about related topics and cases. Chapter 4 PUBLIC GOODS a.Objectives and requirements 1) Master the definition and types of public goods 2) Master the demand curve of public goods 3) Be familiar with the characteristics of public goods supply and production