User charges link funds produced to particular public services-individuals pay only for the services they actually use. Why doesn't all government funding come from such freewill transactions and market exchange?
A) User charges cannot provide a way to reflect demand for a service.
B) Some services have non-appropriable characteristics.
C) Some services are produced in systems showing economies of scale.
D) None of the above.

Question

Quizplus · Accepted Answer

Some services have non-appropriable characteristics, meaning that they cannot be confined to a single individual or group and are available to everyone regardless of whether they pay for them or not. Examples include national defense and policing, which benefit society as a whole and cannot be tied directly to individual use. In such cases, user charges would not be an appropriate way to fund these services.

User Charges Link Funds Produced to Particular Public Services-Individuals Pay