An economist would be most likely to argue that the U.S. national defense should be funded through tax revenues because:
A)U.S. citizens are not likely to voluntarily pay for it.
B)the government is always a more efficient provider of goods than the private market.
C)the government always seeks to act benevolently on behalf of its citizens.
D)individuals who refuse to contribute cannot be excluded from benefiting from national defense.
E)defense equipment and machinery is very costly and huge amounts of tax revenues are required for it.

Question

Quizplus · Accepted Answer

National defense is considered a public good, which means that it is non-excludable and non-rival. This means that individuals who refuse to contribute (such as through voluntary payments) cannot be excluded from benefiting from it. Therefore, tax revenues are necessary to fund national defense and ensure that everyone benefits from it, regardless of their individual contributions.

An Economist Would Be Most Likely to Argue That the U.S