Why are public goods provided by the government, rather than by the private sector?
A) because they are large-scale projects that require the kind of financing only governments can generate through the issuance of bonds
B) because it would be difficult for a private sector firm to make a profit providing a public good, since consumers who benefit would not have to pay for it
C) because no one really benefits from public goods
D) because private sector firms do not have the foresight to plan for public goods

Question

Quizplus · Accepted Answer

Public goods are often non-excludable and non-rivalrous, which means that it is difficult to exclude people from benefiting and that one person's use of the good does not diminish others' ability to use it. Because there is no exclusive ownership, it is difficult for private firms to find a profitable way to provide these goods. Therefore, the government steps in to ensure that these goods are provided for the benefit of society as a whole.

Why Are Public Goods Provided by the Government, Rather Than