Which of the Following Is a Valid Reason for Government

question 56

Multiple Choice

Which of the following is a valid reason for government provision rather than market provision of certain economic goods and services?

• A) When the government provides economic goods, they are free; costs are only incurred when such goods are provided by private firms.
• B) Voters tend to be better informed than market consumers.
• C) Decision makers in the market are motivated by self-interest, whereas, political decision makers are primarily motivated by the desire to help others.
• D) Public goods tend to be undersupplied through the market since it is difficult for potential suppliers to withhold such goods from nonpaying consumers, while the government can use taxes to overcome this problem.

---

Definitions:

Meeting

A gathering of individuals or groups to discuss, decide, or collaborate on topics and issues, often with a structured agenda.

Personal Selling

A marketing strategy involving direct interaction between a sales representative and prospective buyers to finalize a sale.

Communicating Directly

implies delivering messages in a straightforward manner, ensuring clarity and reducing the chances of misunderstanding.

Promotion

A marketing strategy that involves creating awareness of a product or service, often through advertising, discounts, or special events to increase sales.