Explain why public goods must be provided by the government - Economics - Government Budget and the Economy

Question

Explain why public goods must be provided by the government

Bhawna Madaan · Accepted Answer

A good that is non-rival and non-excludable is referred to as
public good Non-rival means that consumption by one individual does
not affect the consumption of another individual Whereas,
non-excludable implies that no individual can be excluded from
using the good For example, parks, roads, national defence, etc
These goods must be provided by the government because of the
following reasons:
1 The benefits of public goods can be easily enjoyed by anyone
without affecting the consumption of other individuals There arises
market failure
2 No individual can be excluded from using public goods as it is
available to all The link between the producer and the consumer
becomes non-functional, necessitating government interference
through public provisions

Explain why public goods must be provided by the government.