- National Defense Is Provided By The Government Because Ofree Riders Make It Difficult For Private Markets To Supply The 1 (62.86 KiB) Viewed 51 times
National defense is provided by the government because Ofree-riders make it difficult for private markets to supply the socially optimal quantity. O products provided by the government can be produced more efficiently. it is impossible for private markets to produce public goods. if the good were produced in private markets, most likely too much of the product would be produced Question 33 1 pts Internalizing an externality refers to making_ certain that all market transaction benefits go to only buyers and sellers. certain government does not disrupt the internal workings of the market. O buyers and sellers take into account the external effects of their actions by bearing the burden of externalities. O buyers pay the full price for the products they purchase. Question 34 1 pts Externalities of production/distribution cause the market O cause markets to operate more equitably. o benefit producers at the expense of consumers. O cause price to be different than the equilibrium price. O failure in allocating resources efficiently. Question 35 1 pts A government's policy of redistributing income makes the income distribution more equitable, which implies among others O distorts incentives and makes the allocation of resources less efficient. O distorts incentives and alters behavior. o distorts incentives and makes the allocation of resources more efficient. alters behavior and makes the allocation of resources more efficient.