Give examples of market failure in life and analyze how the government and finance should intervene.

For example, the garlic problem is the market failure. In fact, the supply of garlic in the market is flat, but the price of garlic has risen artificially. At this time, the government will intervene.

The means of government intervention are divided into three aspects:

1. Legislative and administrative means

2. Organize the public to produce and provide public products.

3. Raise funds and funds for government departments to organize production and provide public products through taxes and fees. The government should intervene garlic from 1 2. We should severely crack down on investors who drive up prices, hell to pay. Garlic should be provided to the people in life to alleviate the man-made supply imbalance.

Market failure refers to the situation that the market cannot effectively allocate goods and services. For economists, this word is usually used when the inefficiency is particularly serious, or when non-market institutions are more efficient and their ability to create wealth is better than private choice. On the other hand, market failure is often used to describe the situation that market forces cannot satisfy the public interest. This paper focuses on the mainstream view of economics. Economists use modeling theory to explain or understand this situation. The two main reasons of market failure are the improper transmission of cost or profit price, which further affects the market decision-making mechanism of individual economy.

The defects of market mechanism in allocating resources are reflected in the following aspects: unfair distribution of income and wealth. This is because the market mechanism follows the principles of capital and efficiency. The principle of capital and efficiency has "Matthew effect". From the market mechanism itself, this is a normal economic phenomenon. The more capital you have, the market will fail. The more favorable the competition, the greater the possibility of improving efficiency, and the more concentrated income and wealth are to capital and efficiency; On the other hand, the deprivation of employees by capitalists makes some people poorer and further widens the distribution of income and wealth. This kind of expansion will reduce the market relatively because it affects the consumption level, and then affect production, restrict the full utilization of social and economic resources, and make it impossible to maximize the utility of social and economic resources.