Final answer:
Government intervention is often sought to solve problems like market failures, public goods, and collective action problems. Effective public policy requires balancing the strengths and weaknesses of both markets and government actions. Intervention aims to serve the broader social interest but must be carefully considered due to the potential imperfections of government actions.
Step-by-step explanation:
The public and policymakers may decide that government intervention is necessary to solve problems that cannot be adequately addressed by the market alone. This often occurs in situations of market failure, such as when monopolies restrict competition or when activities result in negative externalities. Examples of public policy actions include the creation of regulations to break up monopolies or to protect the environment from pollution.
Government resolutions can also aim to address public goods and collective action problems, which are situations where the benefits of a good or service are shared by all members of society rather than being confined to individual purchasers. Examples include national defense, public safety, and environmental protection. Government agencies, like the Tennessee Valley Authority, might provide essential services like electricity in areas where private companies find it unprofitable.
However, it is crucial to note that government action is not without its imperfections. When designing and implementing public policy, governments must balance the solutions with the actual strengths and weaknesses of markets and governmental systems. Public policy is, therefore, not merely about intervention but about making informed decisions that balance both market and government efficiencies to serve the broader interests of society.