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WELFARE STATE |
Economic – social programmes perform a range of economic functions, including the regulation of
demand and structuring the labour market.
Social – social programmes are used to promote objectives regarding education, family and work.
Market Failure – in certain cases, the private sector fails to meet social objectives or to deliver eff cient
production, due to such things as monopolies, oligopolies or asymmetric information.
Economies of Scale – some services can be more eff ciently paid for when bought ‘in bulk’ by the
government for the public, rather than purchased by individual consumers. The highway system, water
distribution, the f re department, universal health and national defence are some examples.