When the government provides a public good by taxing citizens and using tax money to provide the good
A) the result is efficient if the total value of the public good is greater than the cost of providing it.
B) the result is inefficient because the government is an inefficient provider of goods and services.
C) the result is inefficient because if it were efficient the good would have been provided in a free market.
D) the result is efficient only if voters specifically agreed to provision of that good.

Question

Quizplus · Accepted Answer

When the government provides a public good through taxation, it can be efficient if the total value of the public good is greater than the cost of providing it. In such cases, the government intervention can lead to a more efficient outcome than the free market. However, this might not always be the case and it depends on the specific circumstances.

When the Government Provides a Public Good by Taxing Citizens