Which of the following is a disadvantage of government provision of a public good?
A)The government lacks information about what people are willing to pay for the good.
B)The government does not provide enough of any public good.
C)The private sector can provide all public goods at a lower cost.
D)None of the above is a disadvantage.

Question

Quizplus · Accepted Answer

The government may not know the exact amount that people are willing to pay for a public good, which may result in either over or underproduction of the good. This can lead to inefficiency and waste of resources.

Which of the Following Is a Disadvantage of Government Provision