The economic problem of what to produce and what to produce would be left entirely to the market without government intervention: this is called "market failure". To help the government know which sector to give the money to, they have "the balance sheet" which is used to show the government's intentions and where they want to invest their money. It is awarded each year in March, by the Chancellor of the Exchequer, and the budget includes; how public spending will be financed, to change tax rates or introduce new ones, including to help achieve economic success such as growth and jobs, and finally to influence spending on specific goods that impact the environment such as alcohol and cigarettes. However, there is a “budget deficit” when government spending is higher than the level of taxation and there is a “budget surplus” when the level of taxation is higher than the level of spending. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay However, there are times when the government needs to step in and intervene and one of them is “The existence of imperfect markets”, this is when there is little or no competition, which is bad for the economy because the economy thrives on rivalries. So the government intervenes when a business or corporation has enormous market power so that it can operate more companies, which is an economic term called "low degree of concentration" which means there are many companies and "a high degree of concentration" means the opposite, so this levels things out. Another reason for the government to intervene would be "the existence of externalities". If someone's actions cause costs to fall on other groups without compensation being paid, an external/social cost is generated. An example would be that the government should monitor the situation and if a company emitted high levels of pollution it would be fined. Another reason could be that "the consumption of some products is harmful from a social point of view". If something is harmful to the environment, the government may start banning certain products such as drugs and may display warnings on products such as cigarettes to show that they are harmful. Another reason might be “to provide merit goods.” Examples of merit goods would be educational and health services, some individuals do not think it is worth saving money for these services or some individuals may not be able to pay for these services. This is where the government steps in and provides these services commonly known as “merit goods.” The government also intervenes "to provide public goods", once again these are goods that, even if they were useful to people, they would not pay for them anyway, so the government provides them and increases the price of taxation. The amount of spending on public goods will vary and will be determined by multiple factors, such as circumstances and political views. Competition policy is primarily a way to promote competition, to try to make markets work better and to strive for greater efficiency in individual countries. markets and increase the rivalry of UK businesses within the European Union single market. The government wants more competition because if there is more competition there is more success for the government. The government also wants to prevent and reduce the abuse of monopoly power. The policy aims to ensure technological innovation that promotes positive efficiency in different markets. Effective price competition between suppliers, so there is more than one option to choose from and your options are not limited. The ultimate goal is to safeguard and promote the attention of.