# Question 3 Government rather than private business provides national defense because O it is a benefit and not a cost O it is a cost and not a benefit O not all who benefit from it would pay for it O if some benefit from it, less is available for others
Attachments
Image attachment 1 for homework question
Image attachment 1
6 months agoReport content

Answer

Full Solution Locked

Sign in to view the complete step-by-step solution and unlock all study resources.

Step 1
: Identify the correct answer based on the given options.

The correct answer is: "O it is a cost and not a benefit" or "O not all who benefit from it would pay for it". I will choose the latter as it provides a more comprehensive explanation.

Step 2
: Explain the reasoning behind the chosen answer.

National defense is a public good, which means it has two key characteristics: non-excludability and non-rivalry. Non-excludability implies that no one can be effectively excluded from using this good. Non-rivalry means that one person's consumption of this good does not reduce its availability to others. Due to these characteristics, people can benefit from national defense without directly paying for it. This creates a free-rider problem, where people enjoy the benefits but have no incentive to contribute to the cost. As a result, government provision of national defense ensures that everyone who benefits pays their share, addressing the free-rider problem.

Final Answer

This is because national defense is a public good with non-excludability and non-rivalry characteristics, leading to a free-rider problem. Government provision ensures everyone who benefits pays their share, addressing the free-rider problem.