Question

A. It is more efficient B. The goods and services may benefit individuals other than the purchaser. C. The value of the goods or services is greater than the individual consumer could afford. D. It promotes economic equity. What are reasons why governments provides public goods and services?

Answer 1

My own answer is because a market failure has occurred and the market has not provided them

Answer 2

Answer: D. It promotes economic equity.

Explanation:

Personally, I think there’s no deep reasoning behind the chosen answer, as to why I think governments provide public goods and services.

At the end of the day, it all comes to empathy. Not every person can easily pay for all services, since every individual comes from a very different economical background, yet everyone deserves an opportunity to sort their issues.

This is also useful for governments because if they continue providing the ones in need, they can count on them during crucial election process. They are votes as well.