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The Government Often Intervenes When Private Markets Fail to Provide

question 54

Essay

The government often intervenes when private markets fail to provide an optimal level of certain goods and services. For example, the government imposes an excise tax on fuel to account for the negative externality that drivers impose on one another. Why might the private market not reach the socially optimal level of traffic without the help of government?


Definitions:

Chromosomes

Structures within cells that consist of DNA and protein, containing genes which are units of heredity and determine characteristics of an organism.

Protein Synthesis

The process in which cells build proteins based on instructions from genes.

Santiago Ramón y Cajal

A Spanish neuroscientist known for his pioneering work on the structure of the nervous system and the neuron doctrine.

Camillo Golgi

An Italian physician and scientist known for his pioneering work in neurobiology; he discovered the Golgi apparatus, a critical cellular organelle.

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