Question

1. How does cybersecurity enhance the operation of markets for goods and services when it's working well, and harm the operation of markets when it's been compromised? What steps can the government take to correct for externalities in the cybersecurity market? Who should pay for these measures - businesses, consumers, or taxpayers? Why?

Answer 1

Cyber security is the only thing which will help in growing the business and also kill the business. Last year we have seen so many cyber crimes.

Cyber security enhance the operations of market in a such a way that there are so many offers for online payments like cash backs where people get attracted and try to pay the amount online. To check the security of these services will make the people to do more online transactions which inturn leads to a more digitilized world and people will use online payment thus creating revenue for this apps and helps in the growth of online sector.

When cyber security is compromised this will lead to data leaks of the people. Hacking of bank accounts and online frauds will increase. Thus it will lead to threat to people. If there are companies which work for government security purposes and these companies data is breached it will also lead to National threat.

The Government should develop a very complicated software where hacking into those systems will be difficult and any thing that is done thriugh online or any security issue which is connected to internet is safe where will no data breaches or hack or thefts. Thus the Government should create a more resisting firewall and enhance its cyber security.

The taxpayers should pay for cybersecurity which inturn is used by government for the benefit of people. The taxpayers are both consumers, producers and retailers who pay tax to the Government.