HND经济学导论.docVIP

An investigative report on Welfare Policy in the U.K. Market Outcome 3 Candidate Name: WANGGAI Grade and Class: 11 Financial services class 6 Catalog ● Introduce ● Section 1 ● Section 2 ● Research Introduce：This report is market failure and governments role and the social welfare policy survey report, report the information from the website as well as books, in a report last may elucidate. 1、Market failure： Market malfunction is due to intrinsic functional defects and external conditions caused by the defect of market mechanism in the allocation of resources in certain areas of operation. Because the market monopoly and price distortion or for the public goods character because of the asymmetric information and the external reasons, causes the resources disposition of invalid or small effect, which can realize resource to configure zero opportunity cost of resource allocation state. Usually used for invalid rate of special major, or non market mechanism is more efficient and the ability to create wealth is better when the private choice. On the other hand, the market failure is usually used to describe the market forces can not meet the status of public interest. Market failure establishes the basis for government intervention. The roles of government in attempting to correct these failures: merit goods, public goods, externalities and imperfect competition。Specific policy measures used by the government of the UK, such as competition, health care, transport etc. The market mechanism may fail to provide the optimal mix of output. The optimal mix of output is the most desirable combination of output attainable with existing resources, technology and social values. Government intervention in economic activities, but complementary, grant of. The government in market economy economic role, is to remedy market flaw or insufficient needs a decision. The