To achieve the efficient level of national defense,
A) the government could provide national defense because it is a public good.
B) private firms can provide national defense because it is a private good.
C) the government can provide national defense because it is a private good.
D) the government can provide national defense because it is a common resource.
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

National defense is a public good, which means that it is non-excludable and non-rivalrous. This makes it difficult for private firms to provide national defense efficiently because it is difficult to charge people for their use and it would lead to free-ridership. Therefore, the government is best suited to provide national defense because it can ensure that all citizens are protected and can finance it through taxes.

To Achieve the Efficient Level of National Defense