In a market economy, what is the role of the government with regards to public goods?
A. The government has to facilitate the collective decision making in the production of public goods.
B. The government must force the firms to produce all the public goods.
C. The government must take over the production of all goods in the market, public or private.
D. The government must hold a referendum before any public good is produced.
Answer:A
In a market economy, what is the role of the government with regards to public goods?
A. The government has to facilitate the collective decision making in the production of public goods. B. The government must force the firms to produce all the public goods. C. The government must take over the production of all goods in the market, public or private. D. The government must hold a referendum before any public good is produced.