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Which of the Following Is a Valid Reason for the Government

Question 201

Multiple Choice

Which of the following is a valid reason for the government rather than the market to finance the provision of certain economic goods and services?


A) ​When the government provides economic goods, they are free; costs are incurred when such goods are provided by private firms.
B) ​Voters tend to be better informed than market consumers are.
C) ​Decision makers in the market sector are motivated by self-interest, whereas political decision makers are primarily motivated by altruism (the desire to help others) .
D) ​Public goods tend to be undersupplied through the market since it is difficult for potential suppliers to withhold such goods from nonpaying consumers; the government can use taxes to overcome this problem of nonpayment.

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