ST*Rfish home
Teachers' Notes
Students' Activities
Welcome!
Activity A
Activity B
Activity C
Activity D
Activity E
Activity F
Activity G
Fact Sheets
Resources
News Stories
Fish Catch Info
Glossary
Photos
Downloads
 
Ship
ST*Rfish home
Economics Kid
Economics Student's Activities Economics Kid

Activity C
Economics Kid

 

1.  Marine Pests

This activity for year 13 economics students looks at the issue of introduced marine pests to illustrate the concepts of market failure and externalities and to identify methods that the Government can use to compensate for market failure.

2.  Achievement Objectives.
   
  NCEA External Achievement Standard - Economics 3.3
    Demonstrate an understanding of allocation via the public sector.
   Fact Sheets
      How to help us
      Marine biosecurity management
      Marine biosecurity research programmes
      Marine pests in New Zealand
      Marine pests threatening our waters
      The organisational structure of marine biosecurity in New Zealand
      Protecting our marine biodiversity
      What is marine biodiversity?
Top of page top
3.  Activities.
Use the fact sheets to help you undertake the following activities.
  1. Introduction - what are biodiversity and biosecurity?
   

Read the fact sheets "What is marine biodiversity?" and "Organisational structure of marine biosecurity in New Zealand".

In groups or as a class, discuss, create, and display definitions of biosecurity and biodiversity.

  2. How do marine biosecurity threats demonstrate market failure?
   

As a class, discuss some recent examples of biosecurity breaches caused by, for example, trade, tourism, or transport.

Choose one marine pest and read about its impact on a particular New Zealand or overseas environment.

Using this marine pest as an example, write a statement about market failure. For example, you could write, "If unregulated, the economic activity of trade causes undesirable organisms to be introduced."

Top of page top
  3. Use a marine pest threat to demonstrate an externality.
 
Externalities of production
+ve
-ve
 
Externalities of consumption
+ve
-ve
 
   

Graph key:
Qs - social quantity
Qm - quantity in market
Pm - price in market
Ps - social price
MC - marginal cost
MSC - marginal social cost
MB - marginal benefit
MSB - marginal social benefit

(Source: Evans, Geoff. Senior Economics: For Year 13. Auckland: Pearson Education Limited, 2000.)

   

Choose one marine pest and find out about its mode of distribution.

Write a statement explaining what type of externality it represents. Draw an appropriate graph to support your explanation.

  4. Suggest workable policies for internalising externalities.
    Choose a specific marine pest and/or the way that it could come to a foreign port and answer the following:
      (a)

What is the pest? How could it move from its natural range to a foreign port?

      (b)

Who benefits from the activity that is the way it could come to a foreign port?

      (c)

Who incurs a cost if this pest is released, and what/how much might that cost be?

      (d)

Who should pay this cost?

      (e)

What is a policy/regulation/system that would practically control or eliminate this threat? (Examples might be bans, tariffs, quotas, inspections, and so on.) Support your suggestion with an appropriate graph.

      (f)

Does this policy make the person/industry causing the threat pay the cost of managing the threat? Therefore, will the externality be internalised?

  5. Examine the government policies and regulations that relate to marine biodiversity and biosecurity.
    Within the areas of biodiversity and biosecurity, give examples of the Government acting in each of its four roles:
      (a)

Allocative - determining how resources are allocated

      (b)

Regulatory - establishing basic rules, such as Acts of Parliament

      (c)

Distributive - intervention to distribute income more fairly

      (d)

Stabilising - intervention in the market to ensure steady growth

4.  Useful Links.
  www.niwa.co.nz/edu/students.
  Undaria - gorse of the sea?. (Link to Department of Conservation NZ web site)

 

Welcome! | A | B | C | D | E | F | G
Top of page top
Back