Question

Defend or refute the argument that the government has too large a presence in the agriculture industry.

Answer 1

1. Greater equality - redistribute income and wealth to improve equality of opportunity and equality of outcome.

2. Overcome market failure - markets fail to take into account externalities and are likely to under-produce public/merit goods.

3. Macroeconomic intervention - intervention to overcome prolonged recessions and reduce unemployment.

4. Disaster relief - only government can solve major health crisis such as pandemics.