HND经济学outcome3Report形式

Outcome3 ReportF7J8 34Economic Issues: An IntroductionDeclarationI hereby declare that this submission is my own work and that, to the best of my knowledge and belief, it contains no material previously published or written by another person or material which has to a substantial extent been accepted for the award of any other degree or diploma at any university or other institute of higher learning, except where due acknowledgment has been made in the text.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。

Signature: ________________Date: ________________Content1.Instruction (4)2.Findings (4)2.1 Market failure (4)2.1.1 Public goods (4)2.1.2Monopolies (5)2.1.3External influence (5)2.1.4 Asymmetric information (5)2.2UK Government policy on welfare (6)2.2.1Taxation: (6)2.2.2 Reformation (7)3.Evaluation (8)4.Conclusion (9)5.Reference (9)1.InstructionMy reporter is expounding the market failure, and in my explanation I make appropriate reference to the role of government in relation to each of the following: Public Goods, Monopolies, External influence and Asymmetric information. Later, I will explain the UK government policy on welfare and identify and describe the instruments the government use to achieve their policy and give a justified evaluation of the performance of the policy in relation to its use within the UK2.Findings2.1 Market failureMarket failure is a situation that the market cannot allocate goods and services efficiently. In my opinion, market failure means that the public interest cannot be satisfied by market forces. There have four reasons, which are public goods, monopoly, external influence and asymmetric information, in the market.2.1.1 Public goodsThe public goods are available to members of society to enjoy common items, which have non exclusive and non competitive characteristic. Non excludability refers to a person to enjoy the public goods does not affect the use of another person while non competitive is refers to the consumer increase does not cause the increase of production cost. For example, the national defence is the public goods, which brings safety to people without getting money. To be more specific, when a citizen enjoys a national security, he will not affect the others to enjoy national security at the same time.2.1.2MonopoliesThere have two types in monopoly —— oligopoly and perfect monopoly. Oligopoly is a market state that a small number of sellers dominate the market, which has a significant characteristic that a few companies monopolize a market. Such as Sinopec and CNPC control whole oil market in China. The perfect monopoly is a market structure that only has one producer in the whole industry. That is to say, there have only one company supply goods or services of a particular industry in a certain geographical range, for example, the government undertake whole things for railway from planning to construction.2.1.3External influenceMarket economy activities based on reciprocal transaction and those in addition to transaction relationship come with effect on others called by external influence. For example, a village wants develop in their economic, so people build factory beside river. However, the waste water that the factory pollutes in the river cause damage to people who live in there. The factory pollutes waster water to produce productions while people pay money to buy them, nevertheless, the factory will not give money to people who damaged by the waster water.2.1.4 Asymmetric informationAsymmetric information means that people who participates the economic activities hold different information. This make someone may use information superiority to fraud, which will damage the legitimate transactions. For example, when we go to the insurance company to buy insurance, the information that both us hold are unequal. Thus, some staffs will use their information make us to buy less bonus insurance.2.2UK Government policy on welfareBritain established a "welfare state" in 1945. Britain's social welfare system of long history and connotation is broad, which plays a positive role in promoting development of the British social and also has the negative influence. In the recent 10 years, the British government awares of the drawbacks of the welfare system, and take measures to reform to turn a negative into a positive, which can promoting the economy development.Broad social welfare refers to improve the standard of living of the masses of social member of various policy and social services, aiming to solve the majority of members of the community in all aspects of the welfare problems.The social welfare of narrow sense refers to provide social care and social services to weak life ability of children, the elderly, parent families, disabled and chronic mental patients so on. So the welfare has become a subject which includes Life, education and medical care.In western, people call it welfare economics, which is the study of how an economy can best allocate its resources to ensure that they achieve the greatest utility or economic welfare of its people.When resources are used efficiently then maximize the welfare or utility of all, t his is refers to people’s well being, and the United Kingdom Government believes it has a role in the redistribution of income and wealth allowing the increase in economic welfare. This policy is achieved by following points.2.2.1Taxation:Tax is main form and source of income for the national public finance. So there have several reasons for taxation on welfare aspect. Firstly, taxation can raise money to pay for government expenditure. For the British government, social welfare expenditure accounted for a large proportion of totalexpenditure. So the government has to raise taxes on the rich citizens to reduce the social burden for people who in difficulties. Secondly, a tax can be placed on goods and service that may be termed harmful by society. Through this aspect of tax, government can use them for school construction and advance medical equipment to provide better social welfare.2.2.2 ReformationIn 1999 February, the British Parliament passed the "welfare reform and Pension Act", which sure the British government's welfare reforms plan in terms of law. It include following reforms.●Adjust the relationship between work and welfare and make work become only way to accessinto the welfare system for most people. For this purpose, the British government formulate and implement a large-scale "welfare to work" program. This is huge British "New Deal" formulated different action plan for each of the five unemployed and adopted a series of policies and measures. For example, though reduction of working families tax and social insurance payment provisions, modify the tax system reform to enhance the value of work and increase work attraction for welfare recipients.●To combat and prevent welfare fraud. In order to achieve this, the British government increasedinvestigation of welfare fraud and cracking strength. For example, it gives local governments more autonomy in investigating fraud issues, and provides the corresponding economic incentive, which would make the welfare system specification.It is clear that the policy has proved to be more expensive than was envisaged. Since 2000, the British welfare system has become the burden for the economic development, and social welfare expenditure is decreasing year by year. Until now, the British in order to maintain the high welfare spending, the government takes huge borrowing, which leads to deficits in fiscal. It is difficult to assess the amount of money needed to carry out the policies, such as, care in the community and free personal care-local authorities that may not have enough money to provide these partly due to the aging population. However, there has another problem. Once the policies were put in place, local authorities and social workers soon discovered that there were many more people in the community entitled to these benefits than had previously claimed Government help.This problem will, in the future, be exacerbated with the decline in the population – there will not be enough young people to work and provide the taxes needed to support an aging population. Another issue was that demand was outstripping supply. When free personal care was introduced, social work and health services were swamped with demand for these services.This is not the only area of public ownership. We must always remember that the role of public ownership will cover many aspects of our society:·Public goods·Nationalized / Government owned industries for example, BBC, Royal Mail·Regulation of industries for example, transport with OFGAS, OFTEL etc·Control of private industries through legislationThis report mainly writes the term market failure, and discusses the role of government in the market failure by four parts. Also talk about the UK government policy on welfare and the way or instrument to achieve this policy and give a justified evaluation for this policy.5.Reference1.Scottish Qualifications Authority (2013), Economic Issues: An Introduction2./link?url=CsO57YG6ASczDodQ8XiBnrv8KWbU86ESDJr-rpZxpTuDD2Yq9YIMUQDfgB5rMOumIKCk71HoDTHQD_xnM6dToLg4pHqbIvyiHodhPIOSYZi3./knowabroad/britain/weal/2011319113901.html4./link?url=v_3z7JkJL19dDb6DzuDHtvn9Y030rK1_HfMVP939JRyXw4VbHH5y2X_e2-WOS8jF5./subview/7981/11202684.htm6./link?url=Mla8jS3P1cjp31qEFw1fNik7LZwJyt1AzN3_BULkm4EEL8SOUrV0aDF04eU_rmpJj7o04NlyWsjQoGahpR9mz_。