Reference no: EM132892891

Discuss how the role and function of budgeting has been utilized to correct externalities and other market failures. Additionally, justify the use of taxpayer resources to correct externalities and other market failures. Make sure that you support your assertions with scholarly and biblical references

Use bolded statements as headings in your thread. (Failure to do so will affect your score.)

I. Analyze the role of the government in the budget process

II. Analyze the role of the government in correcting externalities and other market failures

III. Analyze the use of taxpayer resources to correct externalities and other market failures

The assignment is to analyze, not describe:

Descriptive writing merely communicates the "what"- in other words, it describes a situation as it is. Plain and simple. It does not consider anything beyond that. Contrasted to this, analysis communicates the "so what?" - in other words, the significance, and implications of a given situation. Ideally, this impact discussion should link to the research questions or broader research purpose.

Externalities are a consequence of a governmental activity that affect other parties without this being reflected in the cost of the goods or services involved. Externalities by nature often are environmental. Some examples of negative externalities include:

· Air pollution

· Water pollution

· Farm animal production

· Passive smoking.

· Traffic congestion

· Noise pollution

Market failure is an inefficient allocation of resources. Government failure occurs when government intervention results in a more inefficient and wasteful allocation of resources.

Make sure not to give a canned/summary brief of the assignment. Focus on the assignment objectives: (1) the role of the government in the budget process, (2) the role of the government in correcting externalities and other market failures, and (3) the use of taxpayer resources to correct externalities and other market failures.