Essay --

The term market failure refers to the measurement of products required by consumers not be equal to the quantity supplied by the suppliers this could mean that the quantity of products demanded be too high and there is a lack of supplies or that quantity of products demanded ar too low and there is a purpose little in supplies. The Government in this case plays a signifi spatet aim in order to control the fluctuation of quantity demanded and supplied in umpteen ways in relation to public goods, merit goods, externalities and imperfect competition. existence goods are provided by the Government, for example street lights. They are non-excludability goods because it targetnot be provided to merely those who pay for it through taxes so those who have no pay for this can still benefit from this good. If public goods like the street light were odd for us to pay individually (like a private good that can only be used if paid for) there would be less public goods available. The Governments role in this department is to make sure a suitable level of public goods is provided. The government intervenes in this by levy workers, organisations and consumers which result in public revenue. Public revenue can wherefore be used on public goods to ensure enough of it is provided. some other example of a public good is public parks and the upgrade department that the government provide. Merit goods are different compared to Public goods they are goods that the government need to interfere in as it would be under-consumed if they did not. They are provided both by public and private sectors. Education and the National wellness Service (NHS) are Merit goods. If education was left for us to richly pay for it, then there would be less educated large number due to the lack of fina... ... in supplies meets the demand. The increase in supplies was encouraged by offering high wages and salaries to husbandmans so this overall improved their income. This insurance pol icy still present today works as agricultural workers being financed mainly through the CAPs single farm defrayal which is given yearly to aid the farmers work. It now excessively includes care for environmental pollution, animal welfare and biodiversity. Farmers now being paid through the Single Payment Scheme have set rules they essential achieve in order to receive the payment. Farmers gaining the payment have the plectron to produce any goods on their land however they must to a fault keep their land in good condition and maintain this condition. If the farmer fails to do so, the payment they regularly gain will be lower. In relation to their condition of their land, animal welfare and the environment must be valued.