Government goods and services that aren't sold directly to the consumers, for example defence goods, roads are categorised under:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. public goods
Certain commodities and services that are not available through the market mechanism—that is, through a transaction between individual buyers and producers—are supplied by the government.
- These goods are referred to as public goods and include things like government administration, highways, and national defence.
- These products are essential to daily life and the advancement of the country.
- There is no ignoring the supply of these products.
- Because these commodities are not profitable and do not have a viable market, the private sector is not interested in these operations.
- So, the responsibility for providing these products falls on the government.