Do NOT use "etc." or "and so on" in your formal essay. They make you look very lazy, vague, uncertain, and informal.
Using "such as" is a good way to be more specific. Take a look at the following example:
- The government is faced with difficult challenges, such as health care reform and the war in Iraq (o)
- The government is faced with difficult challenges like health care reform, the war in Iraq, and so on (x)
- They don't, he doesn't, the government won't .... (x)
- They do not, he does not, the government will not .... (o)