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Why are some goods only provided by the government?
Why are some goods only provided by the government?
Solution
Public goods are provided by the goverhment because of the failure of the market to provide
them. Examples of public goods are postal services, national defense, police services. It could
not be feasible for private sector to provide policing, military services because of the nature of
the services. Public goods are not excludable, i.e., we cannot exclude people from enjoying the
benefits like street lights, and public goods are non-rivalrous. If one person enjoys the public
goods, it does not reduce the availability to others.

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Why are some goods only provided by the government Why are .pdf

  • 1. Why are some goods only provided by the government? Why are some goods only provided by the government? Solution Public goods are provided by the goverhment because of the failure of the market to provide them. Examples of public goods are postal services, national defense, police services. It could not be feasible for private sector to provide policing, military services because of the nature of the services. Public goods are not excludable, i.e., we cannot exclude people from enjoying the benefits like street lights, and public goods are non-rivalrous. If one person enjoys the public goods, it does not reduce the availability to others.