Tugas 3 Bahasa Inggris Niaga

Putri Regina Octaviana(043076123)

Answer
1. If a country does not have adequate infrastructure, various negative impacts can occur on its
economy. Some consequences that may arise due to lack of infrastructure include:
A. Access and Mobility Limitations
Damaged or inadequate roads can hinder the mobility of goods and people, making it difficult to
distribute goods and services. Lack of efficient transportation can reduce connectivity between
regions and hinder economic growth.

B. Health and Education

Lack of health facilities can lead to the uncontrolled spread of disease, reducing labor
productivity. Poor educational infrastructure can affect the quality of human resources, limiting
the workforce's ability to contribute to the economy.

C. Economic Development
Without adequate infrastructure, it is difficult for economic sectors to develop, such as industry,
agriculture and tourism. Foreign investment may also be hampered by uncertainty and risks
associated with a lack of supporting facilities.

D. Lack of Access to Resources

Poor infrastructure can hinder access to natural resources and energy, hindering a country's
economic potential.

E. Uncertainty and Instability

Lack of infrastructure can create economic and security uncertainty, affecting the confidence of
investors and the general public.

F. Increased Operational Costs

Businesses may face high operational costs due to difficult logistics, maintenance of frequently
damaged vehicles, or increased production costs.
Infrastructure refers to the basic set of facilities, systems, and structures that support the
operations of a country, region, or community. It covers various sectors such as transport, energy,
communications, water, and sanitation.

Infrastructure creates the foundation for daily life and a well-functioning economy.
Transportation, as part of infrastructure, includes a network of roads, bridges, ports and airports
that facilitate the movement of goods and people.Energy infrastructure involves power plants,
distribution networks, and renewable or conventional energy resources. Meanwhile, the
communications sector includes telecommunications networks that enable the exchange of
information.
Health and education infrastructure provides access to quality health services and adequate
education for the community.
Meanwhile, water and sanitation infrastructure involves providing clean water, sewerage and
sanitation facilities that ensure environmental health.
The importance of infrastructure lies not only in meeting basic needs, but also in supporting
economic growth, facilitating investment, and creating an environment conducive to social and
economic development. Overall, infrastructure acts as the backbone for achieving progress and
prosperity in a society.

2. Solutions for market failure

Here are some solutions that can help to fix market failure:

• Government legislation: When market failure occurs, local, state and federal governments can
enact certain laws to help ease certain issues. For example, they might ban indoor smoking or
create legislation that limits practices that harm the environment.

• Price mechanism: This strategy describes the manipulation of product prices to change
consumer buying behaviors, especially for to dissuade them from using goods that harm
themselves or the market. For example, governments might raise the price of alcohol or
cigarettes to discourage their purchase.

• Private collection actions: This is a solution to market failure that describes entities privately
agreeing to limit how much they consume a good or service. They might then enforce self-
imposed rules among themselves to combat the effects of market failure.

• Direct provision for public and merit goods: Government entities usually have direct control
over the resources, goods and services that provide positive externalities. This can include items
like better educational access, public parks, hospitals and libraries.
• Taxation: Similar to price mechanism, governments might raise taxes to certain goods and
services to discourage people from using them. By placing a tax on a product, they subsequently
increase the cost to buy it, which some people may decide not to pay.

• Subsidies: If there is a good that provides positive benefits to a person or society, then
governments might reduce the price of those goods, encouraging more people to buy and use
them. For example, lowering the cost of college tuition can benefit society by creating a more
educated workforce.

• Property rights extensions: Property rights can extend to create privatization for specific non-
private goods, usually those that are natural like beaches, lakes and rivers. This creates a market
for pollution, which allows individuals to take legal action if corporations pollute those areas.

• Tradable permits: Permits give companies the ability to produce a specific quantity of
something, like air pollution. Companies can trade their permits among themselves to alter what
they can produce, lowering their negative externalities with a production cap or limit.

• International government cooperation: For certain types of market issues, governments from
different countries sometimes come together to work on a specific problem. For example, many
governments combine their efforts to protect the environment and ease the effects of climate
change.

• Advertising: Depending on the type of market failure that's occurring, advertisements can help
resolve those issues. A successful advertising campaign can discourage people from using goods
and services that generate negative externalities.

3.Public and private goods are actually two extreme, contradictory terms. Public goods lie at one
end of the spectrum, and private goods lie at the opposite end of the spectrum. However, in
reality almost no one can meet the criteria for both extremes. In other words, in fact there is
almost no good/service that we can call pure public goods or pure private goods (just as in reality
it is very difficult to realize a perfect market condition, where pure private goods can be realized
in a market mechanism).

The terminology that lies between the two spectrums is quasi-public goods. Quasi-public
goods/services are goods/services that can almost be called public goods, but cannot absolutely
fulfill all the characteristics of public goods. We can also say that these quasi-public goods have
the characteristics of public goods as well as the characteristics of private goods. However, we
cannot define which properties quasi-public goods have in general, because these specific
properties will depend very much on the type of good.

This concept of quasi-public good usually arises because of certain conditions that force or make
a public good unable to fulfill all its characteristics absolutely. An example of a quasi-public good
is a highway or public road. We can agree that roads are public facilities, public goods, and
everyone has the right to use roads as a means of transportation. However, we can imagine that
if too many road users use one road at one time, it could cause traffic jams. The presence of one
vehicle can reduce the opportunity for other vehicles to take optimal advantage of the road.

In other words, highways are non-excludable, but they give rise to rivalry, especially in traffic
jams. The condition that causes or forces this to happen is the limited availability of land to build
a road network. We cannot just build a road network because land is limited and there are many
other functions that require that land.

Another example is clean water. We agree that everyone needs clean water, and therefore, we
must naturally classify water as a public good, just like air and sunlight. However, if we look at the
case example of PDAM, clean water processing is expensive. For this reason, PDAM services are
then only applied to those who pay. Those who do not pay for some time will no longer be able
to enjoy PDAM services. This means that it is excludable. Apart from that, water use can be
optimal if clean water sources are abundant or the number of users is not too large. However, in
conditions where clean water is scarce or there are very many users, use by one consumer can
reduce the opportunity for other consumers to use clean water. Thus, under certain conditions, it
can be rivalry. However, once again, because up to now we have known clean water as one of
everyone's primary needs therefore it must be grouped as a public good