Governments have ways to fix problems that affect everyone, which helps improve our well-being. Here are some easy ways they can do this:

1. Taxes and Subsidies:

   • When the government puts a tax on things that are bad for the environment, like pollution, it encourages companies to produce less waste. For example, a carbon tax makes it less profitable for businesses to pollute.
   • On the other hand, subsidies are like financial help from the government. They can support good things, like education, making it easier for more people to afford it.

2. Regulation:

   • The government can create rules to limit harmful actions. For example, laws about how much pollution cars can produce help keep our air cleaner.

3. Public Goods:

   • The government can provide things that everyone can use, like parks and street lights. These benefits may not get enough support in the market, but they are important for everyone.

By doing these things, the government can help balance what individuals want with what benefits society!