If government provision of a public good results in an equal reduction in the privately provided amount of that good,then:

Question

Quizplus · Accepted Answer

If the government provision of a public good results in an equal reduction in the privately provided amount, it means that the private provision is fully crowded out. This is because the government is providing the exact same amount as what the private sector was previously providing, leaving no room for private provision.

If Government Provision of a Public Good Results in an Equal