Question
HI I NEED HELP WITH THESE QUESTIONS PLEASE 1.What is meant by the term 'market failure', and what are the main types of market failure?
HI I NEED HELP WITH THESE QUESTIONS PLEASE
1.What is meant by the term 'market failure', and what are the main types of market failure?
2.(a)A neighbour's barking dog can be both a positive externality and a negative externality. Under what circumstances would the barking dog serve as a positive externality? Under what circumstances would the barking dog be a negative externality?
(b)In both of the following cases, identify the type of externality that led policy-makers to implement regulations. a In 1992, the government of Singapore banned the importation and sale of chewing gum. This included bringing chewing gum into Singapore for personal use. (Note: This law was softened in 2004 following the United States-Singapore free trade agreement, which allowed certain chewing gums to be sold by pharmacies for therapeutic reasons.)
b France has a law that portable listening devices must have a maximum output level of 100 decibels. Apple was forced to change the output of its iPods sold to France as their output exceeded 100 decibels., and also explain whether each is an example of a negative production or negative consumption externality.
3.(a)Explain why goods provided by the government such as education, healthcare and public transport are not public goods.
(a)Why won't the market provide public goods?
(b)What policies can the government to ensure the provision of public goods?
4.(a) What is the 'tragedy of the commons'?
(b)What policies can the government to manage the use of common resources?
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