Governments Provide Public Goods Such as National Defence Because

question 95

Multiple Choice

Governments provide public goods such as national defence because

• A)governments are more efficient than private firms at producing public goods.
• B)of the free-rider problem,which results in underproduction by private firms.
• C)people do not value national defence very highly.
• D)of the potential that private firms will make excess profit.
• E)of external costs.

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