National Defense is largely provided by public agencies because
A)technical changes have enhanced the public good characteristics
B)governments are afraid of being overthrown
C)the benefits are often small
D)private production leads to moral hazard problems

Question

Quizplus · Accepted Answer

National defense has public good characteristics, meaning that it is non-excludable and non-rivalrous. This makes it difficult for private firms to provide it efficiently. With technical changes, such as advancements in communication and weaponry, public agencies are better able to provide national defense in a manner that maximizes the public good.

National Defense Is Largely Provided by Public Agencies Because