Based on the information provided above,which ONE of the following statements would economists tend to agree describes an efficient use of resources?

Question

Quizplus · Accepted Answer

Economists generally agree that government should provide public goods as they have positive externalities and are not likely to be provided by the private sector due to the free-rider problem. This is an efficient use of resources as it ensures that the public goods are available to everyone, and the cost is shared by all. Providing and producing public goods may result in government overreach, while banning their production would be inefficient as it would eliminate the positive spillover effects. Therefore, the best option is for the government to provide public goods.

Based on the Information Provided Above,which ONE of the Following