| Home> Class-12> Economics >Q 80 |
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Que : 80. Why public goods must be provided by the government? Explain. |
Answer: Goods which can be consumed by all the people of the nation equally, where private sectors does not take interest, government directly undertake the production. The government take care of the social welfare whereas the private sectors ultimate goal is to make more and more profits they only produce goods for the people who have purchasing power. For eg., Constructions of capital assets like metro, railways the amount cost in producing is so high that's why the private sector does not interfere in this service and even if they produce such goods and services they will charge a comparatively high prices, which cannot be afforded by all the all the people in the country. |
