Multiple Choice
Governments provide public goods such as national defence because
A) governments are more efficient than private firms at producing public goods.
B) of the free-rider problem,which results in underproduction by private firms.
C) people do not value national defence very highly.
D) of the potential that private firms will make excess profit.
E) of external costs.
Correct Answer:

Verified
Correct Answer:
Verified
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