Question

The Government has various tools available to deal with the Market Failure, the few of the tools available to the Government

Price Profit Regulations

• Restrictive Trade policy and practices

• Direct Controls or Regulations

• Patents and Law of Tort

• Subsidy Policy

• Tax Policy

•    Foreign Exchange Policy. Briefly provide your views on all the above to predominantly sustain for an Economy in Market forces.

Answer 1

On these period of time mainly economic destruction due to mainly some pandemic or economic problems which can negatively imapct on the world widely manner .from this point of view the government take necessary actions such as some tools like restrictive trade policy and practices and price profit regulations ,direct control measures ,patents and law of tort and subsidy and tax policy and some other foriegn exchange policies which are shortly described below

Restrictive trade policy and practices: it means to take necessary actions to remove unfare competition in the trade of goods and services.and facilitates free flow of goods and services with cost effectively.
Directive control measures and regulations; the government take some directive control measures which follow to whole public and institutions and organisation for a better improvement in the economy. It's has some policies and rules regarding the income flow mainly the banking sectors and the interest rate and credit rate etc..

Patent and law of tort means mainly give some protection directly to the creative works or books or any product or technology based anything give to the lawful protection from the unlawful and unfair use of the specific items or goods or service.
Subsidy policy mainly give to the risky ventures and underdeveloped sectors which have a promotional tool for the growth of same.
Tax policy is very importent on the time of destruction of economy to the increase the tax charge from the individuals and company. And the collected tax amount used for the welfare of the economy.