Question

Describe a recent government intervention into a market. What was the perceived [or real] market failure that was occurring [or, on other words what was the rational behind the government stepping into a market]?

Answer 1

The primary objective of Government intervention is to have fair distribution of wealth and Income and to accelerate the Performance of Economy, erradicate the health, unemployment issues faced by public . For example : If the economy is facing Unemployment so Govt would intervene by providing schemes for Education and training for employment .Example to provide a cleaner and promote renewal sources of energy US came out with Waxman-Markey bill, also called the American Clean Energy and Security Act,

The main objective is to reduce co2 revision by 2020 . In this bill Government provided a CAP of Co2 emission that can emitted annually . Companies are required to buy permits for emission and Govt provide allowances to companies who follow the norm and manage the Co2 emission is efficient way. This bill aims to use 20% of electricity through Renewable energy sources . Provide subsidy to promote new clean energy technologies .