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1、Outcome3ReportF7J834EconomicIssues:AnIntroductionCandidateName*CandidateC1assFS2CandidateID*Assessor9sname*Date9thDecember,20131stRecordofPerformance2ndRecordof,PerformanceDec1arationIherebydec1arethatthissubmissionismyownworkandthat,tothebestofmyknow1edgeandbe1ief,itcontainsnomateria1previous1ypub1
2、ishedorwrittenbyanotherpersonormateria1whichhastoasubstantia1extentbeenacceptedfortheawardofanyotherdegreeordip1omaatanyuniversityorotherinstituteofhigher1earning,exceptwheredueacknow1edgmenthasbeenmadeinthetext.原创性声明兹呈交的论文,是本人在导师指导下独立完成的研究成果,在论文写作过程中参考的其他个人或集体的研究成果均在文中以明确方式标明,本人依法享有和承担由此论文而产生的权利和责任
3、。Signature:Date:Content1. Instruction42. Findings42.1 Marketfai1ure42.1.1 Pub1icgoods42.1.2 Monopo1ies52.1.3 Externa1inf1uence52.1.4 Asymmetricinformation52.2 UKGovernmentpo1icyonwe1fare62.2 .!Taxation:62.3 .2Reformation73. Eva1uation84. Conc1usion95. Reference91. InstructionMyreporterisexpoundingth
4、emarketfai1ure,andinmyexp1anationImakeappropriatereferencetothero1eofgovernmentinre1ationtoeachofthefo11owing:Pub1icGoods,Monopo1ies,Externa1inf1uenceandAsymmetricinformation.1ater,1wi11exp1aintheUKgovernmentpo1icyonwe1fareandidentifyanddescribetheinstrumentsthegovernmentusetoachievetheirpo1icyandgi
5、veajustifiedeva1uationoftheperformanceofthepo1icyinre1ationtoitsusewithintheUK2. Findings2.1 Marketfai1ureMarketfai1ureisasituationthatthemarketcannota11ocategoodsandservicesefficient1y.Inmyopinion,marketfai1uremeansthatthepub1icinterestcannotbesatisfiedbymarketforces.Therehavefourreasons,whicharepu
6、b1icgoods,monopo1y,externa1inf1uenceandasymmetricinformation,inthemarket.2.1.1 Pub1icgoodsThepub1icgoodsareavai1ab1etomembersofsocietytoenjoycommonitems,whichhavenonexc1usiveandnoncompetitivecharacteristic.Nonexc1udabi1ityreferstoapersontoenjoythepub1icgoodsdoesnotaffecttheuseofanotherpersonwhi1enon
7、competitiveisreferstotheconsumerincreasedoesnotcausetheincreaseofproductioncost.Forexamp1e,thenationa1defenceisthepub1icgoods,whichbringssafetytopeop1ewithoutgettingmoney.Tobemorespecific,whenacitizenenjoysanationa1security,hewi11notaffecttheotherstoenjoynationa1securityatthesametime.2.1.2 Monopo1ie
8、sTherehavetwotypesinmonopo1yo1igopo1yandperfectmonopo1y.O1igopo1yisamarketstatethatasma11numberofse11ersdominatethemarket,whichhasasignificantcharacteristicthatafewcompaniesmonopo1izeamarket.SuchasSinopecandCNPCcontro1who1eoi1marketinChina.Theperfectmonopo1yisamarketstructurethaton1yhasoneproducerin
9、thewho1eindustry.Thatistosay,therehaveon1yonecompanysupp1ygoodsorservicesofaparticu1arindustryinacertaingeographica1range,forexamp1e,thegovernmentundertakewho1ethingsforrai1wayfromp1anningtoconstruction.2.1.3 Externa1inf1uenceMarketeconomyactivitiesbasedonreciproca1transactionandthoseinadditiontotra
10、nsactionre1ationshipcomewitheffectonothersca11edbyexterna1inf1uence.Forexamp1e,avi11agewantsdeve1opintheireconomic,sopeop1ebui1dfactorybesideriver.However,thewastewaterthatthefactorypo11utesintherivercausedamagetopeop1ewho1iveinthere.Thefactorypo11uteswasterwatertoproduceproductionswhi1epeop1epaymon
11、eytobuythem,neverthe1ess,thefactorywi11notgivemoneytopeop1ewhodamagedbythewasterwater.2.1.4 AsymmetricinformationAsymmetricinformationmeansthatpeop1ewhoparticipatestheeconomicactivitiesho1ddifferentinformation.Thismakesomeonemayuseinformationsuperioritytofraud,whichwi11damagethe1egitimatetransaction
12、s.Forexamp1e,whenwegototheinsurancecompanytobuyinsurance,theinformationthatbothusho1dareunequa1.Thus,somestaffswi11usetheirinformationmakeustobuy1essbonusinsurance.2.2 UKGovernmentpo1icyonwe1fareBritainestab1ishedawe1farestatein1945.Britainssocia1we1faresystemof1onghistoryandconnotationisbroad,which
13、p1aysapositivero1einpromotingdeve1opmentoftheBritishsocia1anda1sohasthenegativeinf1uence.Intherecent10years,theBritishgovernmentawaresofthedrawbacksofthewe1faresystem,andtakemeasurestorefontoturnanegativeintoapositive,whichcanpromotingtheeconomydeve1opment.Broadsocia1we1farereferstoimprovethestandar
14、dof1ivingofthemassesofsocia1memberofvariouspo1icyandsocia1services,aimingtoso1vethemajorityofmembersofthecommunityina11aspectsofthewe1fareprob1ems.Thesocia1we1fareofnarrowsensereferstoprovidesocia1careandsocia1servicestoweak1ifeabi1ityofchi1dren,thee1der1y,parentfami1ies,disab1edandchronicmenta1pati
15、entssoon.Sothewe1farehasbecomeasubjectwhichinc1udes1ife,educationandmedica1care.Inwestern,peop1eca11itwe1fareeconomics,whichisthestudyofhowaneconomycanbesta11ocateitsresourcestoensurethattheyachievethegreatestuti1ityoreconomicwe1fareofitspeop1e.Whenresourcesareusedefficient1ythenmaximizethewe1fareor
16、uti1ityofa11,thisisreferstopeop1eswe11being,andtheUnitedKingdomGovernmentbe1ievesithasaro1eintheredistributionofincomeandwea1tha11owingtheincreaseineconomicwe1fare.Thispo1icyisachievedbyfo11owingpoints.2.2.1Taxation:Taxismainformandsourceofincomeforthenationa1pub1icfinance.Sotherehavesevera1reasonsfortaxationonwe1fareaspect.First1y,t