The government provides public goods because

Question

Quizplus · Accepted Answer

Private markets have a tendency to underproduce public goods because individuals are unlikely to voluntarily pay for goods that provide benefits to others in addition to themselves. As a result, the optimal quantity of public goods is often not produced in a private market. The government, therefore, steps in to provide public goods in order to ensure that the efficient quantity is produced for the benefit of society as a whole.

The Government Provides Public Goods Because