Note AcademyNote Academy
Start

Economics (AS & A Level) · Feb / March 2021 · Paper 12 · Question 18

9708Classification of goods and services

Why is national defence provided by the government?

  1. AIn a free market it is excludable and rival in consumption.
  2. BIn a free market it is non-excludable and non-rival in consumption.
  3. CThe government has perfect information, so it can set the correct quantity required.
  4. DThe private sector firm would charge a high price for its use as it is a necessity.

As printed in the paper

Show the answer

Correct answer: B. In a free market it is non-excludable and non-rival in consumption.

Sit this whole paper →More on Classification of goods and services

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.