![]() Various private service organizations are furnishing such information by directly conducting market surveys etc. In developed markets, more market information is available without the help of the Government. They need information regarding the quality and prices of raw materials, end products, factor costs, labour exchanges and so on. consumers, resource owners and entrepreneurs have perfect and correct information on various aspects. Market system will work better only when the individual participants i.e. He further declared that the state might help to correct some of the imbalances in the market mechanism in the following ways. However, as pointed out by Gerald Sirkin, these imperfections are capable of at least partial correction by the Government action. The Government cannot correct the imperfections in the market absolutely. Even developed economies are no exception to this. ![]() Perfect market in its original sense, does not exist anywhere in the world. In such a situation, the Government and its organisations alone should be called upon to finance such activities particularly in underdeveloped countries and even in the developing economies. Moreover, they may also exploit the society if they have a free hand in them. Moreover, it is not also advisable to leave them in the hands of private individuals or market participants to bear the burden. It involves a huge capital outlay.Īt the same time, the return is very poor when compared to the capital investment involved in them. The provision of basic infrastructure like power, communication, port facilities, banking and other institutional facilities is sin qua non for the growth of the national economy. Only a competent Government can organize such activities and provide finance to carry on them. Again the difficulties involved in collecting the fees from the beneficiaries are not also very easy. But it is difficult to promote and administer such organizations. Some of the services or activities can be carried on by voluntary agencies and service organizations like Red Cross etc. Hence, they cannot be left to the market mechanism. The market mechanism cannot and shall not provide such services. ![]() These services are called non-excludable public services or goods. They include nation’s defense and related services, price protection, flood control, protection of public monuments, buildings etc. Provision of Non-market Products and Indivisible ServicesĬertain products and services are necessary for the very existence of the society. ![]()
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