What Are Quasi-Public Goods and Why Does the Government Provide

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The Answer is Quasi-public goods are goods provided by the government that fit the economist's definition of a public good but can be produced in such a way that exclusion would be possible.Such quasi-public goods include education, streets and highways, police and fire protection, libraries and museums, preventive medicine, and sewage disposal.They could all be priced and provided by private firms through the market system.But because they all have substantial positive externalities, they would be underproduced by the market system.Therefore, government often provides them to avoid the underallocation of resources that would otherwise occur.

What Are Quasi-Public Goods and Why Does the Government Provide

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What Are Quasi-Public Goods and Why Does the Government Provide

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