Which of the following is a true statement regarding why the government produces public goods?

A) Public goods are valued highly by some but not by the majority.
B) Because of the electoral system, the public sector tends towards producing those goods that help politicians get elected.
C) Some goods should be produced whether they are economically efficient or not.
D) Because it is difficult to exclude those who do not pay for public goods.

Question

Abigail Sullivan · Accepted Answer

Final Answer : D, Explanation :  Public goods are non-excludable and non-rivalrous, meaning it is difficult to exclude individuals from using them, and one person's use does not reduce availability to others. This often leads to underproduction in the private market, so the government steps in to provide them.

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