Market failure is when the free market fails to allocate resources in the most efficient way. What that means is resources are being used to produce goods that could instead be used to produce something that is more beneficial to society. (Williamson, O. E. 1971) So market failure means the economic market can’t give the goods or services to the customer efficiency, and make a great impact to customers. Merit goods means somethings that provide by the government or the country, it will not get benefit from consume merit goods, but it will also bring some benefits for the society, but people will not recognize it. (Musgrave, R. A.
Market Failure and Government’s Intervene Introduction Adam Smith holds that market is a self-adjust system, which need not outside intervene. However, in reality, many markets are not healthy enough and requiring external help. Body 1.Market failure means buyers and sellers a market cannot maximize the total benefit by them own. Market failure stands for when market cannot allocate resources efficiently to achieve market aim, which is to satisfy customers and sellers, when government is required to intervene the economy (Stanlake, G F, 1976). The following four situations require intervenes from government.
As a result, consumers in capitalist market or the society as a whole would be exposed to products that are unsafe and harmful such as defective goods. The product quality and safety may not up to standards as they do not find it sufficiently profitable to exercise due care. In the case of MacPherson v Buick Motor Car, the doctrine of privity that required a contractual relationship between plaintiff and defendant was removed. As a result of court’s decision, plaintiff consumers are able to sue and recover damages arisen from the manufacturer of a defective good. Next, doctrine of strict product liability holds manufacturer to be responsible for damages resulting from any product’s
Some researcher merely had said that “it is just not right” without giving any further explanation or any type of elaborations (MaGee, 2009) . Others say that that it is immoral to trade the inside information because it is a means to make large profit with such little effort which is somehow wrong. A third group had said that insider trading should be a level of playing field and the playing field shouldn’t be the level where the individual enjoys the informational gains over the other parties. A fourth party had taken the position of evaluating insider trading to have fiduciary duty that is not to benefit from the information which are accessed to as being a part of their position with the company. A fifth group had elaborated the theory of misappropriation, which is basically holding the information that they are using for personal advantages that belongs to someone else and therefore, it would result in the violation of the property rights and the contractual rights.
Disadvantages Nudges may be condescending in nature in many ways. Marketing relies on a one-dimensional mental model of consumer behavior. As it uses mental models which treats consumers’ motivations and abilities as inferior in nature as it suggests that the customer is not able to make decIsions on its own. Digital nudging is mostly focused on promoting specific behaviors. Outcomes that really matter, such as greater financial well-being of the consumer, cannot be achieved by single actions and in this respect check on the nudges.
But as the contemporary business scenarios changing archaic risk management practices, therefore, are no longer acceptable to deal with today’s dangers. Traditional risk management has become ineffective as it deals with risks in silos by assigning a risk manager for a particular risk that narrows the results and gives a parochial view to the management. The senior management is not able to understand risk at a macro level that may threaten the entire enterprise. Traditional risk management strategies comprised buying of insurance which were economical for retained risk and could be managed for as low cost as
[Type text] [Type text] [Type text] 1 Human Impact on the Enviroment Human Impacts on the Environment Gary Pace Excelsior College Biology 110 Professor Simmons Our impact as humans on the environment has been drastic, especially for water pollution. Water pollution is the contamination of the water bodies, such as lakes, rivers, oceans, and groundwater caused by our activities. Water Pollution can be deadly for organisms and plants that live in these bodies of water. There are several known ways that humans pollute water, such as dumping garbage in or near the bodies of water, and from spilling oil,, to name a few. Improper disposal of waste can and will have a drastic effect on public health.
Advantages Disadvantages 1) The absence of monopoly power; As the Government controls and regulates the economy resulting in an absence of powers given to providers to set rules and regulations that will be an advantage. Restriction in Freedom; In a command economy, individuals of the society cannot freely consume, produce or invest as they want to. The Government determines and controls what and how much is traded. 2) High priority is given to social welfare; Here, the Government produces goods and services that are essential which will benefit the society as a whole. Innovative ideas aren’t encouraged; As the Government is in full control of the market the Government doesn’t encourage innovation.
(Moloi, 2013). Damming of rivers on the other hand has a high impact on the quality of the water. If a plant will be isolated into the water for a long time, this may cause the inclination of phosphates and other dissolved nutrients in the water or simply, eutrophication. (Moloi, 2013). It has been said that water pollution starts to transpire when unwanted flow of liquid wastes spreads over the water source, which later on causes the change of the water quality.
These chemicals enter into the environment through pesticides applications, as byproducts of industrial process and as household waste such as cleansers and pharmaceuticals. Chemicals in water are a health hazard to living organisms. Chemicals in water can be naturally occurring or introduced by human activities. Water contains chemicals such as fluoride, arsenic, lead, chlorine, petrochemicals and chemicals from recreation use. Fluoride in water is important for protecting teeth and strengthening bones, but at higher levels fluoride can cause negative effects on the health of humans.