Why is national defence provided by the government
A)It is impossible for private markets to produce public goods.
B)Products provided by the government can be produced more efficiently.
C)Free riders make it difficult for private markets to supply the socially optimal quantity.
D)If the good were produced in private markets, most likely too much of the good would be produced.

Question

Quizplus · Accepted Answer

National defence is a public good, which means that once it is provided, it is impossible to exclude anyone from benefiting from it, even if they do not contribute to its production. This creates a free rider problem, making it difficult for private markets to provide the socially optimal quantity of the good. Therefore, national defence is provided by the government to ensure that it is produced and supplied efficiently to benefit all citizens.

Why Is National Defence Provided by the Government