Question 72 of 80 of the following explains why the governiment provides for nat

Question

Question 72 of 80 of the following explains why the governiment provides for national defense? People will honestly tell the government how much they value national defense. People cannot be excluded from benefiting from national defense O Protecting one person means less protection for someone else O The public feels threatened by the private sector's provision of national defens The marginal cost of national defense to serve an additional person is positive Answer the question above by clicking on the correct response hiniontge PriSc ScrLk Pause

Explanation / Answer

Correct option is (2).

A good is a public good if there is non-rivalry and non-excludability in consumption. For a public good, there is a market failure which discourages private firms to produce such goods, therefore the government provides for such goods. Defense is a public good and so the government spends for it.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.