Discuss the reason why governments might want


Give Brief explanation for distribution income, imperfect competition, externalities and lack of information.

Discuss the reason why governments might want to intervene and how they might do- with respect to the subsequent "problem" in the functioning of an otherwise perfectly-competitive ("pareto-efficient") economy:

1) The unequal distribution of income

2) "Breakdowns" in efficiency (i) e. lower real aggregate income than achievable) in the subsequent areas:

a) "Imperfect" competition

b) Externalities

c) Lack of information (both relative and absolute)

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Business Economics: Discuss the reason why governments might want
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