Essay on the Economic Role of Government
How can the government promote the interest of society in the face of the following microeconomic market failures? In your answer, explain the nature of the market failure/problem and the potential role for government for each of the following:
1)a lack of effective competition in some markets;
2)the existence of both negative (pollution) and positive externalities; 3)providing public goods like national defense and streetlights; and
4)asymmetric information problems in markets such as in food and stocks.
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