A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2021 · Q181 Mark
Why is national defence provided by the government?
AIn a free market it is excludable and rival in consumption.
BIn a free market it is non-excludable and non-rival in consumption.
CThe government has perfect information, so it can set the correct quantity required.
DThe private sector firm would charge a high price for its use as it is a necessity.
✓ Correct answer
B: In a free market it is non-excludable and non-rival in consumption.
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