JAWABAN TUGAS TUTORIAL KE-3

PROGRAM STUDI AKUNTANSI

NAMA : YERRITA ANI ROPARTI SITINJAK

NIM : 043878446

MATA KULIAH : BAHASA INGGRIS NIAGA (ADBI4201)

I choose topic no. 2 about Market failure, in economics, is a situation defined by an

inefficient distribution of goods and services in the free
market. Solutions to overcome this problem.

Here are some solutions that can help to fix market failure:

Government legislation: When market failure occurs, local, state and federal governments
can enact certain laws to help ease certain issues. For example, they might ban indoor smoking
or create legislation that limits practices that harm the environment.

Price mechanism: This strategy describes the manipulation of product prices to change
consumer buying behaviors, especially for to dissuade them from using goods that harm
themselves or the market. For example, governments might raise the price of alcohol or
cigarettes to discourage their purchase.

Private collection actions: This is a solution to market failure that describes entities
privately agreeing to limit how much they consume a good or service.

Direct provision for public and merit goods: Government entities usually have direct
control over the resources, goods and services that provide positive externalities. This can
include items like better educational access, public parks, hospitals and libraries.

Taxation: Similar to price mechanism, governments might raise taxes to certain goods and
services to discourage people from using them. By placing a tax on a product, they
subsequently increase the cost to buy it, which some people may decide not to pay.
 Subsidies: If there is a good that provides positive benefits to a person or society, then
governments might reduce the price of those goods, encouraging more people to buy and use
them. For example, lowering the cost of college tuition can benefit society by creating a more
educated workforce.

Property rights extensions: Property rights can extend to create privatization for specific
non-private goods, usually those that are natural like beaches, lakes and rivers. This creates a
market for pollution, which allows individuals to take legal action if corporations pollute those
areas.

Tradable permits: Permits give companies the ability to produce a specific quantity of
something, like air pollution. Companies can trade their permits among themselves to alter
what they can produce, lowering their negative externalities with a production cap or limit.

International government cooperation: For certain types of market issues, governments

from different countries sometimes come together to work on a specific problem. For example,
many governments combine their efforts to protect the environment and ease the effects of
climate change.

Advertising: Depending on the type of market failure that's occurring, advertisements can
help resolve those issues. A successful advertising campaign can discourage people from using
goods and services that generate negative externalities.

Source : https://www.indeed.com/career-advice/career-development/what-is-market-failure