Markets are generally more effective at providing ________ and governments are most effective at providing ________.

Question

Quizplus · Accepted Answer

Markets are efficient at providing pure private goods, which are excludable and rival in consumption, such as clothing or food. Governments are most effective at providing pure public goods, which are non-excludable and non-rival, such as national defense or public parks, because the market may underprovide these due to the free-rider problem.

Markets Are Generally More Effective at Providing ________ and Governments