Assigment 3 and 4 Assignment Example | Topics and Well Written Essays - 750 words

Assigment 3 and 4 - Assignment ExampleThe high demand for the free goods affects the demand that the commercialises be able to supply. Non payers atomic number 18 not able to be prohibited in using the goods. Market failures are usual in provision of frequent goods. When there is no payment of goods, revenues are not realize from the goods that are produced hence the market is not able to produce more. Government distortion is common in production of public goods by dint of production subsidizing and protection of intellectual property inadequately (Hubbard and Anthony, 51). When the interference occurs, the market is not able to earn revenues and profits from the goods produced. This leads to market failure. Government intervention leads to protection of goods in a market and other firms are not able to enter easily into the markets.5. Free rider business occurs when a consumer is in a position of enjoying a good or service without paying for it. Marketers providing public g oods have successfully used a number of techniques to encourage those who use the products to contribute to them (Hubbard and Anthony, 67). In the techniques used, they have contributors private goods, arrange matching contribution for them and appeal to the sense of civil and moral responsibility. Solutions are as followsCommon in public and beautiful sceneries those citizens are ready to access through payments. Limiting enthrall for such areas may make them private. This is common in sectors that are on high demand in an economy in general.Citizens are beneficiaries of services from the government such as defense. They pay for this indirectly through taxation. Though some taxpayers complain, this remains one of the best ways of making the economy of a body politic flow steadily.6. Poverty trap is a mechanism that forces people to remain below the poverty line. It is common in under-developed and developing countries (Hubbard and Anthony, 83). The main causes of the poverty tra p are inadequate credit to citizens and