Economics · Oct / Nov 2021 · Paper 13 · Question 5
Why does a government provide certain goods and services in a mixed economic system?
- AThe government always provides goods more cheaply than private firms.
- BThe government considers only private costs and benefits.
- CThe government provides goods to prevent the development of monopolies.
- DThe government provides public goods because private firms cannot charge for them.
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Correct answer: D. The government provides public goods because private firms cannot charge for them.
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