TAXATIONTaxationWhat measure of government regulation allows the country's citizens the greatest freedom? How much should the government intervene to protect the consumer? These are questions that every society must answer when developing its economic system. And for every question there are multiple answers. Some believe that little or no regulation is needed and that the market has natural laws of its own. Others disagree, saying that it is the government's duty to protect the individual from the evils of the free market. Both solutions have precise characteristics. The government intervenes in the market to correct serious market failures. A marketplace is defined as an organization that allows buyers and sellers to exchange goods or services. A market should be able to allocate resources efficiently with competition in both sellers and consumers and is made up of choices and quality. It should maximize the satisfaction of both consumers and sellers. But markets can create inequalities of opportunity, whereby disadvantaged groups typically lack job skills and knowledge and promote income inequality. A market may also provide collective goods and services inadequately since the primary goal of producers is the personal desire for relatively high profit. In a free market, consumers are not protected from production errors. The market mechanism does not take into account the externalities associated with an economic activity, such as pollution and monopolists, and manipulates the market to its advantage. Without government intervention, the above problems will occur. The government intervenes to ensure the adequate supply of goods and services, which the market may not provide if left alone to its own devices. Government intervention is intended to address market failure and market power. The government can influence the types of products manufactured through health and safety laws, regulations, anti-pollution laws, subsidies, and tariffs. It can also influence the methods of producing goods and services through the infrastructure provided through the level of taxes and interest rates. Government intervention is aimed at promoting and ensuring market efficiency. If the price exceeds the cost of the good or service, the quantity of the good or service that consumers can purchase will decrease. The government intervenes with regulations such as price controls and taxation to redistribute higher-than-normal profits.