A government will use its power to make up for the inadequate supply of a good to:
A)establish a presence as a producer in virtually every market.
B)enhance efficiency in markets for public goods.
C)compete with local businesses.
D)None of these statements is true.

Question

Quizplus · Accepted Answer

Governments often intervene in markets for public goods (like national defense, public parks, etc.) because these goods are non-excludable and non-rivalrous, leading to potential underproduction by the private market. The government's role is to enhance efficiency by ensuring adequate supply of these goods, as the market alone may not provide them in sufficient quantities or at all.

A Government Will Use Its Power to Make Up for the Inadequate