Which of the following can bring about an efficient level of public goods being provided by the government?
A) Free riding on the part of voters.
B) Competition between political parties trying to win an election.
C) Voters who do not care about the benefits and costs of public goods.
D) Rational ignorance on the part of voters.
E) Self-interest among government bureaucrats.

Question

Quizplus · Accepted Answer

Competition between political parties trying to win an election can bring about an efficient level of public goods being provided by the government. In order to win an election, political parties must appeal to voters by offering policies that are desirable, including providing public goods. This competition can lead to a more efficient allocation of resources towards public goods provision.

Which of the Following Can Bring About an Efficient Level