Why is national defence commonly provided by the government, while food is NOT?
A) Food manufacturers have successfully lobbied the government to stay out of the food industry.
B) Food can easily be withheld from those who refuse to pay for it.
C) Food provision is subject to a free-rider problem.
D) Food is too essential to survival to be provided by a bureaucratic organization.

Question

Quizplus · Accepted Answer

National defense is a public good that is non-excludable and non-rivalrous, meaning it's difficult to exclude individuals from benefiting from it even if they don't pay, leading to a free-rider problem. This makes it inefficient for private entities to provide. Food, on the other hand, is excludable and rivalrous; individuals can be prevented from consuming it if they don't pay, making it suitable for private provision.

Why Is National Defence Commonly Provided by the Government, While