To achieve the optimal provision of public goods the

Question

Quizplus · Accepted Answer

Public goods have the characteristics of non-excludability and non-rivalry in consumption, meaning that they are difficult to provide through market mechanisms. As a result, government intervention is necessary for their provision. The government can either directly provide the public goods or subsidize their production to ensure that they are provided optimally. Therefore, choice D (government must either provide the goods or subsidize their production) is the best answer.

To Achieve the Optimal Provision of Public Goods the