The government provides public goods because

Question

Quizplus · Accepted Answer

Public goods have two main characteristics: non-excludability and non-rivalry. Non-excludability means that it is difficult or impossible to charge people who do not pay for the product or service, and non-rivalry means that one person's consumption of the good does not reduce its availability for others. These characteristics make it difficult for private markets to produce public goods, as individuals can free-ride (consume the good without paying for it) and private producers cannot capture the full benefits of their production. Therefore, the government provides public goods to ensure that the socially optimal quantity is supplied, as it can ensure everyone pays their fair share and prevent free-riders from preventing production.

The Government Provides Public Goods Because