1. Public **** goods. The products produced by the economy and society can be roughly divided into two categories, one is private goods and the other is public **** goods. Simply put, private goods are items that can only be used for personal enjoyment, such as food, homes, and clothing. Public **** goods, on the other hand, are goods that can be enjoyed by members of the community **** together. Public **** goods in the strict sense are non-rivalrous and non-exclusive. Non-competition means that one person's enjoyment of a public **** good does not affect another person's enjoyment, and non-exclusivity means that there is no charge for the enjoyment of a public **** good. For example, national defense is a public **** good. It brings people security, citizen A enjoys national security will not affect citizen B's enjoyment of national security at all, and people also do not need to pay to enjoy this security. 2. Monopoly. Some degree of (e.g., oligopoly) and total monopolization of a market may make the allocation of resources inefficient. Correcting this situation requires the power of ***. *** mainly through the intervention of market structure and enterprise organization structure to improve the economic efficiency of enterprises. This intervention belongs to the industrial structure policy of ***. 3. External influence. Market economic activities are based on reciprocal transactions, so the interests of people in the market are essentially those linked to money. For example, if A provides goods or services to B, A has the right to ask B for compensation. When people engage in such economic activities that require the payment or acquisition of money, they may also have a number of other effects on other people, which can be either beneficial or harmful to them. However, whether beneficial or harmful, they are not part of the transactional relationship. These effects on others that are outside the transactional relationship are labeled as external effects, also known as the externality of economic activity. For example, a factory built next to a river discharges wastewater that pollutes the river to the detriment of others. The factory discharges its wastewater in order to make money from its products, and the relationship between the factory and the customers who buy its products is one of exchange of money, but the resulting damage caused by the factory to others may not require the factory to pay any compensation to others. Such impacts are the externalities of the factory's production. When the impact is harmful to others, it is called externally diseconomical. When it is beneficial to others it is called externally economic. For example, the flowers you place on your balcony may bring external economies to people passing by. 4. Asymmetric information. Since participants in economic activities have different information, some people can take advantage of the information to commit fraud, which can jeopardize legitimate transactions. When the fear of fraud seriously affects trading activities, the normal role of the market will be lost, and the function of the market allocation of resources is also dysfunctional. At this time, the market generally can not completely solve the problem by itself, in order to ensure the normal functioning of the market, *** need to develop some regulations to restrain and stop fraudulent behavior.
Question 2: What is market failure? What situations can lead to market failure Hello, market failure says that the market is unable to self-regulate. One of the main causes of market failure to self-regulate is inflation.
Question 3: What are the four sources of market failure There are four basic causes of competitive market failure: market power, incomplete information, externalities, and public **** product.
1) Inefficiency arises when a producer or supplier of factor inputs has market power (market power) because he produces product X by choosing a quantity of output for which marginal revenue (not price) is equal to marginal cost and sells less of the good at a higher price, PX, than in a competitive market. Lower output implies lower marginal cost, which results in a lower marginal transformation of product X into other products (because),is inefficient according to the Edgeworth box diagram analysis. Producing too little of X and producing too much of other products are both inefficient.
2) Incomplete information may give producers a *** to produce too much of something and too little of something else. This can all lead to inefficiencies in competitive markets.
3) Externality: An externality exists when one consumption or production activity has an indirect effect on other consumption or production activities that is not reflected in the market price.
4) public **** product (public goods): it can be provided cheaply to some consumers, but once provided, it is difficult to prevent others from consuming it. It is non-exclusive and non-rivalrous: the marginal cost of adding an extra consumer is zero, and it is impossible to exclude people from using the good.
5) Price stickiness (price rigidity): when the price does not reflect the real demand in the market in a timely manner, it can lead to market failure.
In fact, these points are also linked to each other, can not be divided to say, for example, incomplete information may lead to price stickiness
Question 4: What are the six different kinds of market failure performance a market economic activity is often affected by economic fluctuations, the scarcity of resources are not fully utilized;
Second, the monopoly impedes the free flow of factors, reducing the efficiency of resource allocation;
Third, the externalities are not fully utilized;
Third, the monopoly impedes the free flow of factors, reducing the efficiency of resource allocation.
Third, externalities can not be resolved by the market itself;
Fourth, public **** products can not be provided by the market;
Fifth, incomplete information impedes the effective operation of the economy;
Sixth, the non-market objectives of the community (such as narrowing the gap between the rich and the poor) can not be realized by the market price mechanism
Question 5: The performance of the market failure of the market failure of the market failure of the main performance What are the main manifestations of market failure
① monopoly or imperfect competition exists in the market, so that it does not always produce the most efficient results .
② The externalities of market behavior may have negative spillover effects.
③ The market mechanism cannot guarantee the supply of public **** goods.
④ Uncertainty in the economy caused by incomplete or asymmetric market information.
⑤ The consequences of market-induced income distribution are politically or morally unacceptable.
Question 6: In what situations does the law of value or the market fail? 5 marks First, without a fair and just market order, the advantages of the market in regulating and allocating resources (timely, flexible and accurate transmission of market information) cannot be brought into play.
Second, for public **** goods, because it is non-exclusive and non-competitive, the market does not work (can not regulate).
Third, military goods, narcotics, do not allow the market regulation (not allowed to adjust).
Fourth, let the market regulation, but because of the market's own weaknesses and defects (spontaneity, blindness, lagging) also lead to the market can not be timely, flexible, and accurate transmission of market information, and thus the need for the state's macro-control.
Question 7: Classification of Market Failures (1) Income Distribution Deficiencies (2) Inflation Risks (3) Information Incompleteness (4) Market Failures in Commercial Insurance From the financial aspect, market failures are divided into two types (1) Conditional Market Failures, which refers to the fact that realistic market conditions do not conform to the assumptions of the conditions that are necessary for a purely market economy. (2) Source-generated market failure refers to the fact that even with the complete operating environment required for a pure market economy, the market economy's regulatory effect is not as effective as it should be. Conditional market failure based on 1, imperfect competition 2, externalities 3, insufficient information 4, transaction costs 5, unreasonable preferences Primary market failure based on 1, inequitable income distribution 2, economic fluctuations in the imbalance (1) Monopoly I. Causes of monopoly Economies of scale and *** concessions are the 2 main reasons for the formation of monopoly in the solid waste management industry. Domestic garbage, kitchen garbage, bulky garbage, urban sewage treatment plant sludge, green garbage, fecal residue, animal carcasses, medical waste, abandoned vehicles, hazardous industrial solid waste and other hazardous waste, these solid waste management market segments have limited waste production, industry profit is thin and institutional segmentation characteristics, the treatment of the economies of scale of enterprise production needs to be in a larger range of waste disposal volume and the corresponding larger capital equipment. And the corresponding larger capital equipment production and operation level can be reflected, for a certain region of the solid waste market segments, if the effect of economies of scale, only a few or a large enterprise can handle a certain market segment of the volume of solid waste, coupled with *** out of the consideration of the level of service is often practiced *** concessions of this kind of monopoly competition policy, and thus the formation of solid waste Monopolistic competition or natural monopoly in the solid waste treatment industry. Second, the monopoly of inefficiency monopoly produces monopoly prices, leading to inefficiency and loss of economic welfare, and, in order to obtain and maintain monopoly status, the monopoly will carry out illegal "rent-seeking" activities, leading to a further reduction in economic welfare. Take the natural monopoly situation given in Figure 1.3 as an example, with the monopoly state at point a and the Pareto optimal state at point d. The monopoly will be able to achieve a very high level of profitability, but it will not be able to do so. In order to maximize profits, the monopoly will position its output at Qm, at which point the marginal cost curve (MC) intersects the marginal revenue curve (MR). At this output, the monopoly price is Pm, which is significantly higher than marginal cost (MC) and does not reach Pareto optimality, which is an inefficient state with room for Pareto improvement. Pareto optimality occurs at the intersection (d) of the demand curve (D) and the marginal cost curve (MC), at which point output is Qc and the price is Pc, reaching Pareto efficiency, and there is no longer room for Pareto improvement. In the monopoly state, consumer surplus is aPmf, the economic profit of the monopoly firm, i.e., monopoly profit, is abPzPm, and economic welfare (i.e., the sum of the firm's economic profit and consumer surplus) is abPzf. The price, Pz, is the average cost as determined by the intersection of the average cost curve (AC) and the demand curve (D), at which point the economic profit is 0, and the firm earns only a normal profit. In the Pareto optimal state, consumer surplus is dPcf, the economic profit of the firm is -cdPcPz, and the economic welfare is cPzf. It can be seen that, in the monopoly state, the consumer surplus is reduced by (cdPcPz + abc), the economic welfare is reduced by abc, and the reduction of economic welfare and the monopoly profit of the firms are passed on to the consumers, which is the inefficiency and unfairness of the monopoly. In addition, in order to obtain and maintain the monopoly position, the monopoly enterprise will not hesitate to sacrifice part or even all of the monopoly profit abPzPm, unproductive profit-seeking activities, the so-called "rent-seeking" activities, which leads to greater economic losses than the monopoly price caused by the loss of economic welfare abc. When there are multiple rent-seekers in the entire market, the economic loss of a single rent-seeker is greater than when there is only one rent-seeker, and, as the degree of competition in the rent-seeking market increases, the total rent-seeking loss, i.e., the sum of the economic losses of all rent-seekers, is even more alarming. Rent-seeking leads to a loss of economic welfare and, more seriously, to corruption, which in turn exacerbates market failures. Third, the price control of monopoly from the above analysis can be seen, monopoly leads to resource allocation is inefficient and social injustice, although the monopoly enterprise to obtain monopoly profits, but the interests of consumers and the economic welfare of the community have suffered a loss, which shows that there is a need for monopoly *** control. *** The main tools of monopoly control are antitrust law and price control. Only price control is presented here. As can be seen from Figure 1.3, lowering prices can increase consumer surplus and economic welfare, but in reality, how to determine the regulated price is a complicated matter. Price control generally follow the "efficiency first, taking into account the principle of fairness", try to determine the price in the Pareto-optimal state near ...... >>
Question 8: What are the cases of market failure Market failure, *** the main means of macro-control, the method by adopting different fiscal policy, monetary policy, as well as modify the tax rate, change the law and other extreme methods.
The most typical case in China is the state intervention in the securities and real estate markets.
Is this OK?