(完整word版)E3.doc

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Market Failure and Government Policy
SCN: 177099996
GTB4
Li Wenxuan
Tutor: Lou Qiuyin
November 6th, 2016
Content
introduction
Market Failure
Merit Goods
Public Goods
Imperfect Competition
Externalities
Welfare Policy
Some important welfare
child benefits
Case of welfare
Instrument
Conclusion
Reference
Introduction
Economy is human activity that consists in producing exchanging, distributing, and consuming goods and services, studied by economics and realized inside on. In this report, discussing the reasons for market failure and probe government roles in relation to each of the following and government policy.
Market Failure
The market is a set of buyers and sellers with the potential to trade with each other. But when the market cannot distribution goods and labor efficiency that is market failure.
Merit goods
Merit goods are products whose consumption or production creates social benefits that exceed the private benefit. Just like education, healthcare, public transport. Because many people cannot know anything the advantages, so the government should intervene people choice. Government can get to make a law. For Chinese, have ‘ Nine-year compulsory education law ' . That can help people choose merit goods an