Assignment:
Paper instructions:Topic:
CAN GOVERNEMET INTERVENTIONS CONTROL OR CONTRIBUTE TO MARKET FAILURES?
Market economic activities sometimes result in undesirable outcomes. Cite examples / case studies where government intervention has resulted in controlling or contributing to market failures.
Suggested examples / case studies:
1. US government interventions (banking and financial institutions, housing market, auto industry) during 2008 / 2009 financial crisis
2. US health system and continuing accelerating cost of providing health care
3. Coal mining and coal power plants
4. Current Greek crisis resulting from:
5. financially unsustainable retirement / pension benefits
6. oligopoly in various industries including pharmaceutical industry
7. Tax structure
8. Government ownership and management of air ports
9. Government ownership and management of utility companies, e.g. South African Government’s O&M of electric production
10.UK’s health system
Above examples are suggestions only. You may identify other examples / case studies that can illustrate your case whether government interventions can control or contribute to market failures.