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im super cool youuter fel3e3d3d232310. Market Failure. I once worked at a college which was so committed to profit-maximisation that they used to turn the heating off in winter for two hours to save money (the owner has now retired so I can finally say these things). The funny thing is students would pay £18,000 a year for the privilege. I bought in an electric heater, but that got confiscated. Not being in a trade union or having any bargaining power, I just brought in loads of jumpers to put on. My employer had monopsony power. I would have benefited from the enforcement of rules regarding minimum temperatures in work places.

10. Public Goods not provided by free market. The free market has many advantages. Private firms tend to be more efficient, innovative and respond to consumer preferences. However, many goods and services would either be not provided or under-provided in a free market. Public goods like street lighting and law and order. Also public services like health care and education would be provided in insufficient quantities. Therefore, to optimise social welfare there is need for government intervention through taxes and direct public provision. We may hate taxes, but we would hate not being able to afford going to see the doctor.

11. Macro Economics affects Everyone. Everyone is affected in some way by macro economic issues such as inflation and unemployment. Inflation can reduce the value of your savings. If you keep cash under your bed during high inflation, you’d be better off trying to buy gold or some physical assets. Mass unemployment can cause society to fragment, therefore there is a need to adopt policies to try and reduce

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