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1、Merit goodsThe merit goods are provided from government and basic on the humans need. The merit goods not distributed through price system. But the private sector do not provide merit goods for people(SQA, 2013). Because the private sector just consider themself benefit, it do not consider ordinary
2、peoples safeguard and maybe private sector do not assume to distribute for people . For example: The museum is merit goods from government to provide. It can free visit goods for people. But the private sector do not have many capital pay for the museum and they only collection of charges that peopl
3、e can visit goods. So the government can provide merit goods.Public goodsThe public goods that the social of the goods, the people can together share the goods. In other words, if you use this goods, but you do not prevent other people use goods that Non-rivalry in consumption or if you use this goo
4、ds, but you do not reduce other people together use this public goods that Non-excludability. Such as: the government provide park for people that can do exercise or visit scenery in park and everyone do not pay ticket for park. But the private sector do not provide park, because the people can see
5、the scenery outside the park and private sector do not prevent the people see the scenery. So the government provide public goods.The existence of imperfect marketThe existence of imperfect market is little or competition in companies. So they will appear monopoly and oligopoly. Monopoly goods provi
6、de from single supplier. Oligopoly that have less supplier play a leading role. The monopoly will goods have high price and the company does not update technology and bring many bad influence. For example: Communication enterprise are monopoly by Moving enterprise, Linking enterprise and Telecommuti
7、ng enterprise. They are oligopoly. The most people use them enterprise to exchange. But have less people use network communicate. So, the government make anti monopoly policies, prevent cut-throat competition.ExternalitiesThe externalities that participate in an action, give people to bring benefit
8、or harm. But these people does not fee charging or pay remuneration. It include external benefit and external cost. For example: A people smoke in the public and another people smell of smoke, but people who smoke in public, he does not pay charge for another people. It is external cost. So, the government make a policy that doesnt smoke in the public.For example: A people plant flowers in his garden. Then a bad mood person come with flowers. When he see f
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