📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      The government provides public goods because

      A private markets are incapable of producing these types of goods Correct Answer Incorrect Answer
      B free-riders make it difficult for private markets to supply the socially optimal quantity Correct Answer Incorrect Answer
      C markets are always better off with some government oversight Correct Answer Incorrect Answer
      D external benefits will accrue to private producers Correct Answer Incorrect Answer
      E all of these Correct Answer Incorrect Answer

      Solution

      Free-riders make it difficult for private markets to supply the socially optimal quantity so government provides the public goods.

      Practice Next
      More Research Questions
      ask-question