HND经济学导论OUTCOME

Market Failureand GovernmentPolicySCN:177099996GTB4Li WenxuanTutor:Lou QiuyinNovember6,2016thContent

1.1introduction

1.2Market Failure

2.1Merit Goods

2.2Public Goods

2.3Imperfect Competition

2.4Externalities

3.0Welfare Policy

3.1Some importantwelfare

3.

1.1child benefits

3.2Case of welfare

3.3Instrument

4.0ConclusionReference

1.0IntroductionEconomy ishuman activitythat consistsin producingexchanging,distributing,andconsuming goods and services,studied byeconomics andrealized insideon.In thisreport,discussing thereasons fbrmarket failureand probegovernment rolesin relationto eachofthe followingand governmentpolicy.

2.0Market FailureThe market isa setof buyersand sellerswith thepotential totrade witheach other.Butwhen themarket cannotdistribution goodsand laborefficiency thatis marketfailure.

2.1Merit goodsMeritgoods areproducts whoseconsumption orproduction createssocial benefitsthatexceed theprivate benefit.Just likeeducation,healthcare,public transport.Because manypeoplecannot knowanything theadvantages,so thegovernment shouldintervene peoplechoice.Government canget tomake alaw.For Chinese,have Nine-year compulsoryeducationlaw\That canhelp peoplechoose meritgoodsandbenefits ofpeople.

2.2Public GoodsPublicgoods areready fbrsocietal membersenjoy theitems together,strict senseof thepublicgoods withnon-competitive andnon-exclusive.It isa publicthing justlike theParkbench orcivil defensesiren.Someone usedit thatdo nothinder othersuse it.The governmentshouldbuild thisgoods,because donot havesomeone couldeven wantto buildbuild butthesociety needit.The governmentuse taxto buildand maintainit.

2.3Imperfect CompetitionImperfectcompetition ismonopolistic competitionand oligopoly.It ismeant byperfectcompetition cannotmaintain.Because havesome buyersor sellerscould affectthe marketprice.Themarketcannot changethe price.Because theimperfect competitionwill decreasethemarket efficiency.The governmentshould changeit toadjust amarket toa newenvironment.For examplemake alaw.Just likesAntitrust Law.

2.4ExternalitiesThe followingsentences arefrom Wikipedia.In economics,an externalityis thecost orbenefitthat affectsa partywho didnot decideto incurthat costor benefit.Economists oftenurgeall governmentsadopt policiesthat internalizean externality,so thatcosts andbenefitswill affectmainly partieswho chooseto incurthem.Just likethe pollution,government thinkswho takethis whoshould solvethis.If thereare external benefits,such asincommunal safety,less ofthe goodmay beproduced thanwouldbe thecase ifthe producerwere toreceive paymentfbr theexternalbenefitsto others.Thus,unregulated marketsin goodsor serviceswith significantexternalities generatepricesthat donot takeinto accountthe fullsocial costor benefitof theirtransactions;such marketsaretherefore inefficient.So governmentshould makesome lawsor rulesto standardit.

3.0WelfareThe UKas a long-term capitalistcountry.It isalongand perfectsocial welfaresafeguardsystem.Society welfareincluding thebenefits offamily,child benefits,death andbenefitsetc.

3.1Some importantwelfare

3.

1.1Child BenefitsThechild benefitsin theUK,government ensuresthat everychild canreceive educationandlife eventhey donot havekinsfolks.From childto adult,government subsidies,aid,guarantee thesmooth growthof children.The Britishgovernments childrenswelfare,bothin termsofwelfare,welfare contentand servicelevel,its integrityand comprehensivenessisexemplary,first ofall,British childrenwelfare legislationperfect,various kindsof laws andregulations,not onlycovers thegrand,and establishedthe principleof childrenswelfare isthehighest,fbr childrensright tosurvival anddevelopment,such asparticipation rightsprotectionare madea detailedregulations andemphasis,second,the completionof thenwelfarestate fbrcitizens“from cradleto gravetomb comprehensivesocial security,thebenefit ofchildren mainlyinclude:the nationalhealth insurance,children canenjoy besidesdentalsurgery,visual acuityand glassesall freemedical care.Family subsidysystem,covering maternitybenefits,birth allowance,children stick,Tianjin,children,child careallowance,single specialallowance,etc.;Education funding,children receiveprimary andsecondaryschool educationfor free,with freebooks,stationery,lunch atschool;Socialservices,set upthe childrenshome withinthe community,for toobusy totake careof thechildsfamily toprovide helpand receivedorphans andabandoned children,and isresponsiblefbr theirlife andeducation.Again,the wholesociety tofound amulti-level,vertical andcomprehensive child welfare system.This wayis mainlyunder thegovernmentsmacro management,association fbr the disabled,charitable organizations,social servicemachinestructure,all kindsof schoolsand communityorganizations andgroups,within theirrespectivefields tocarry outthe childwelfare services,formed amulti-level,three-dimensional type,a fullrange ofchildwelfareservices network.The Britishnot onlybuiltup socialrelief,social insurance,social security,basic education,medical servicecontentsuch aschildrens socialwelfare system,and childrensrights ingovernment policies,lawsandinstitutions formedical treatmentand teachingeducation practiceof occupiesmoreand moreimportant position.

3.2Case ofwelfareIn theUK,child benefitis operatedby HerMajest/s Revenueand CustomsHMRC.As ofApril2015,This is£

20.70per weekfbrthe first childincluding theeldest ofa multiplebirthand£

13.70per weekfbr eachadditional child.The systemwas alsoimplemented inAugust1946as”family allowances”under theFamilyAllowances Act1945,at arate of5s=£

0.25per weekper childin afamily,except fbrtheeldest.This wasraised fromSeptember1952,by theFamily Allowancesand NationalInsurance Act1952,to8s=£

0.40,and fromOctober1956,by theFamily AllowancesActand NationalInsuranceAct1956,to8s for the secondchild with10s=£

0.50forthethirdand subsequentchildren.By1955,some5,000,000allowances werebeing paid,to about3,250,000families.It wasrevised in1977,with thepayments beingtermed nchild benefit11and givenfor theeldestchild aswell asthe youngerones;by1979it wasworth£4per childper week.In1991,the systemwas furtheraltered,with ahigher paymentnow gavethefirstchild thanfbr theiryoungersiblings.In October2010,the Conservative-Liberal Democratcoalition governmentannouncedthat Child Benefit wouldbe cancelledfrom householdscontaining ahigher-ratetaxpayer fromJanuary

2013.After somecontroversy thiswas amendedso thatany householderwith aleast onepersonwith prescribedincome over£50,000would loseChildBenefitby ataper whichremoved italtogetherwhen theincome reached£60,

000.This cameinto forceon7January

2013.

3.3InstrumentIn theUK,childbenefitis administeredby HerMajestys Revenueand CustomsHMRCUnitedKingdomUK*Amount forchildren childienunder10First Child£82105€Other£

54.2070Children€

4.0ConclusionOver the years,the welfarepolicy helpstabilize thesocial order,ensure thepeoples livingstandards,the generalimprovement ofsocial materialand culturallevel.Close thegapbetween therich andthe poorarea,ease socialcontradictions inall walksof life.However,,atthe sametime,theyearsof highwelfare,let governmentdeficit。