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The following are some ideas to help you pick a topic for the Market Failure Research Paper assignment. Consult with your instructor if you are having trouble picking a topic.What are some areas where the MARKET Fails to give us adequate quantity of output and desirable price??
(A) Public Goods and Service — Schools, Highways and Streets, Fire and Police Protection, National Defense, Prisons
(B) Industries that Need to be Regulated — Utilities, Airlines, Banks — As our economy changes what other industries also need to be regulated or de-regulated?
(C) Externalities — Companies produce some type of external cost that affects the community. The company would not voluntarily reduce or eliminate this cost unless the government required them to do so. (These could also be benefits that would add to community but not benefit the company in any way.)
(D) Income Inequality — Minimum Wage, Welfare Programs, Unemployment Benefits, Social Security, Medicaid — Areas where our society is becoming more socialized.
Assignment: Pick one market in which the price system does not produce an equitable price and quantity of output. Write a paper of 250 words minimum discussion with at least (2) sources cited in the MLA format. Include in your discussion:
(1) What action has our government taken in order to provide this good or service in an equitable fashion?
(2) What are the alternatives to government intervention?
(3) What has been the end result of government intervention?
