role government

 role government

 role government: Describe the role government should play in correcting for market failures. Make sure to apply Saint Leo’s Core Values to your analysis, remembering that responsible stewardship calls on us to be ‘resourceful’. You should cite specific examples and applications, and take a clear stand on whether you believe the actions of government work towards resolving market failures or not.

This assignment must be a 2-3 page Word Document and use 12 pt. Times New Roman font with proper APA citations.

Answer Preview

When an economy experiences market failure, the government come up with a tax relief plan where some companies have a period in which they do not pay taxes. The tax reliefs will prevent the collapse of firms and will allow entry of more firms in the market which is very resourceful. Also, the existence of a monopoly where one firm controls the market may lead to increase in prices since there is no competition in such a case, a monopoly power arises and other companies are blocked from venturing into the market and the market is put at stake if the firm was to close down…

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