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But also the states with its heavy taxes and destructive inflation. Otherwise

Speaking, protection guarantees that sowed the field will be allowed for collecting

Crop. The crop as a result appears plentiful. When the state badly copes with this protective function, arise Serious problems. If the private property rights are not defined accurately Or are not observed, people will appropriate another's property, nothing Paying in its owners. In conditions when one can force to pay for Itself others, the market cannot normally function, as the mechanism Definitions of true production costs of the goods on which it is based, Will not operate. Besides, resources, the property rights on which are indistinctly defined Or are protected, exposed to an overexploitation not enough. Environmental contamination is a classical example such Situations. The second major function of the state - productive - consists in Maintenance of citizens with the so-called public blessings which have Two distinctive features:

(1) they cannot be given to someone to one, without having made them at the same time

Accessible to the others, and

(2) it is difficult, and sometimes and it is impossible, to limit a circle consuming these blessings

Only those who pays for them. National defence, projects on prevention of flooding or on struggle with Insects - examples of the public blessings.

It is very difficult to private concerns to make and sell the similar blessings. In force

The nature of these blessings to establish a direct connection between a payment for

Them and their granting it is almost impossible, and, hence, at

The consumer there is no stimulus to get them. They will be paid by others, and it

Can consume their gift. We take as an example the project on prevention of flooding. If certain

The firm builds a dam for drain regulation, difficultly or nearly so it is impossible

To limit its use only brought the mite in building, Having refused at this all to the rests. Realising it, potential addressees Benefits usually do not wish to cover costs of such project, giving This right to "that guy". In this situation even the most effective project It can appear impracticable. The society can win, carrying out potentially favourable project of the such Sorts through the state. In effect, such activity meant Adam Smith when formulated well-known "three functions of a crown". The state legitimate right - to do that people alone or cannot To master in general, or not in a status to make very well. How to define, whether the governmental project really is The effective? It is considered that majority support does the political Action lawful and effective. It can seem surprising, but If the project is really effective, costs for its realisation always

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Business Icon Set Business Icon Set is a library of fine-looking ready-made icons for use in programs and on Web projects. They are delivered in a variety of formats, sizes and color schemes.

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