Link the relationship between all of Market failure, Public goods, Monetary Policy, Government intervention, Externalities, Fiscal Policy, in an explanatory essay. Minimum 3 pages.

Market failure and government intervention
Nation always prefers perfect competition market, because they believe that there is a efficient allocation resources in this kind of market. In perfect competition both produce and consumer enjoy more amount of surplus. At times market become unfavourable and leads to inefficient allocation of resources which refers to as market failure in the economy. A market failure occurs in different types they are 1.Public goods, 2.Externalities, 3.Asymmetry information and 4.Concentrated market power.
Public goods:
Two features of public good are 1. Non rivalry and non excludable .Non rivalry good means consumption of a good or services does not exclude other persons from consuming the same goods or services. For example Public beach: when one person is consuming/enjoying the beach cannot exclude other persons enjoyment in the beach. Non excludable goods means consumption of goods cannot be excludable from those who didn’t pay for it. For example nation’s defence service, defence services were provided by using the cost that is paid in the form of cost. This service is used by all of them in the nation and it does not prevent non taxpayers from using it. For example if there is any tension exist in the nations border means everyone in the border region were protected by defence person and they won’t separate non taxpayers from giving protection.
Externalities:
It occurs when a business involves benefits (positive externalities) or cost (negative externalities) to other person who didn’t involve in...