Markets and the Economics of the Public Sector

Scenario: Imagine you have been assigned the responsibility of preparing a paper for the governor's next economic conference. 

Prepare a 1,050-word paper addressing the following:

• Explain why equilibrium of supply and demand is desirable.
• Explain the following concepts using the concept of consumer and producer surplus:
  • Efficiency of markets
  • Costs of taxation
  • Benefits of international trade
• Discuss how externalities may prevent market equilibrium and the various governments policies used to remedy the inefficiencies in markets caused by externalities.
• Analyze the difference between the efficiency of a tax system and the equity of a tax system as it refers to the costs imposed on taxpayers using the benefits principles. 

Cite a minimum of three peer-reviewed sources, not including your textbook.

Format consistent with APA guidelines.