ECO3CMF Competition, Market Failure and Government - Assignment 1

Assignment 1:

During the pandemic over the last year there have been many different interventions by governments in Australia and around the world. In this subject we have studied how there may be a role for government as a consequence of market failures. These include market power, uncertainty, externalities and public goods, and information asymmetry.
In this assignment you need to pick two government actions or interventions and analyse the market failures that these interventions are seeking to resolve. The interventions or actions can be in Australia or a state of Australia or some international government. Some examples include compulsory mask wearing and lockdowns, concerns/protections for industries where firms might close down, maintaining employment relationships. You are welcome to come up with your own example(s).
For each case, you must:
1) Clearly explain the government action or intervention
2) Define and explain the market failuresthat you think are relevant. There may be more than one related to the action.
3) Explain how the government action might reduce the inefficiency or dead weight losses associated with the market failure.
You should also provide an introduction and conclusion briefly summarising the key points.