Why does the market not provide national defence
A)It is impossible to prevent any single person from enjoying the benefit of national defence.
B)The fixed cost of national defence is too high.
C)The necessary resources for national defence are not available in the private sector.
D)Private sectors are not willing to pay for it.

Question

Quizplus · Accepted Answer

National defence is a public good, meaning it is non-excludable and non-rivalrous. This means that once it is provided, it is impossible to prevent any single person from enjoying its benefits, leading to the free-rider problem where individuals have no incentive to pay for it themselves.

Why Does the Market Not Provide National Defence