The government provides public goods because:

Question

Quizplus · Accepted Answer

Public goods are non-excludable and non-rival in consumption, meaning that individuals cannot be prevented from using them and one person's use does not diminish the availability of the good for others. Private markets are not incentivized to produce public goods because they cannot charge individuals for their use, and free-riders can take advantage of the good without paying for it. This makes it difficult for private markets to supply the socially optimal quantity of the good, hence government intervention is required to provide public goods.

The Government Provides Public Goods Because