Describe the role government should play in correcting for market failures. Make sure to apply Saint Leo’s Core Values to your analysis, remembering that responsible stewardship calls on us to be ‘resourceful’. You should cite specific examples and applications, and take a clear stand on whether you believe the actions of government work towards resolving market failures or not.
Sample Solution
The role of government in correcting for market failures is essential. Market failures can arise from a variety of sources, including imperfect information and the externalization of costs onto third parties. In order to address these issues, governments can intervene with policies such as taxes or subsidies, regulations on pollution and emissions, or public investment in research and development. Additionally, governments may choose to provide direct services such