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Business
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| Number of pages / Number of words: |
4 / 974 |
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The government can correct for the overallocation of resources associated with spillover costs through legislation or taxes; it can offset the underallocation of resources associated with spillover benefits by granting government subsidies. Also, the government provides certain public goods, because they are indivisible and free-riders can obtain them without payment...
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Also, the government provides certain public goods, because they are indivisible and free-riders can obtain them without payment. The government also provides many quasi-public goods, because of their large spillover. Quasi-public goods are goods that may be produce in such a way, that the exclusion principle would apply...
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