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Illustrate the 4th role is the reallocation of resources

Illustrate the 4th role is the reallocation of resources?

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A fourth role is the reallocation of resources comprises provision of public or social goods, such as streetlights, education, national defence and lighthouses. It also comprises government programs which correct misallocation of resources, also it may occur when there are spillover costs or benefits.  When spillover costs happen, resource allocation would be more than is socially desirable, because some of the production costs have been passed on to third parties.

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