Which of the following methods would help to produce optimal amounts of public goods?
A) antitrust law
B) regulation
C) privatization
D) taxation

Question

Quizplus · Accepted Answer

Taxation can provide the necessary revenue to produce and provide public goods in optimal amounts. Public goods are non-rival and non-excludable, which means there is no market incentive for private producers to supply these goods. Taxation can help to overcome this market failure and ensure the provision of public goods. Antitrust law, regulation, and privatization do not directly address the issue of producing optimal amounts of public goods.

Which of the Following Methods Would Help to Produce Optimal