Th1.4: Advantages of State Provision of Public Goods Flashcards
1
Q
What are the four advantages of state provision of public goods?
A
corrects market failure
equality
benefits of the good themselves
efficiency
2
Q
Corrects market failure
A
by providing important goods which would otherwise not be provided, leading to improved social welfare
3
Q
Equality
A
by ensuring everyone has access to basic goods
4
Q
Benefits of the goods themselves
A
for example, by providing healthcare, the government ensures that the workforce is healthy, improving economic growth
5
Q
Efficiency
A
by using competitive tenders, the government can ensure efficiency
