Why Does the Government Provide Public Goods

question 114

Multiple Choice

Why does the government provide public goods

• A)Private markets are incapable of producing public goods.
• B)Free riders make it difficult for private markets to supply the socially optimal quantity.
• C)Markets are always better off with some government oversight.
• D)External benefits will occur to private producers.

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Definitions:

Social class

A division of a society based on social and economic status, influencing an individual's opportunities, lifestyle, attitudes, and behavior.

Grandmothers

Women who are the mothers of one’s parents, often playing a significant role in family structures and childcare.

Care

The provision of what is necessary for the health, welfare, maintenance, and protection of someone or something.

Elderly parents

Older adults who have raised children and are in the later stages of their life.