Assertion (A): The government provides public goods such as national defence.
Reason (R): No one can be kept from enjoying a public good, so people would not pay for it voluntarily.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

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CorrectNot quiteAnswer A

Correct answer: A

Since the market cannot collect payment, it under-supplies public goods, and the government steps in. R explains A.

Concept: Why government provides public goods
Typical timeTypical: 70 s
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The rule this testsThe budget and its objectives

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Assertion (A): The government provides public goods such as national defence.Reason (R): No one can be kept from enjoying a public good, so people would not pay for it voluntarily.

Explanation

Assertion (A): The government provides public goods such as national defence.
Reason (R): No one can be kept from enjoying a public good, so people would not pay for it voluntarily.