ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The government plays a significant role in providing goods such as national defence, infrastructure, education, security, and fire and environmental protection almost everywhere. These goods are often referred to as “public goods”.

Detailed explanation-2: -This category is called impure public goods. A perfect example is a highway system. Once built, everybody who owns a vehicle can use it. That means the impure public good can also be consumed jointly.

Detailed explanation-3: -Examples of public goods include law enforcement, national defense, and the rule of law. Public goods also refer to more basic goods, such as access to clean air and drinking water.

Detailed explanation-4: -These goods are necessary for daily life and national development. Supply of these goods cannot be ignored. The private sector does not hold any interest in these activities because these goods are not profitable and don’t have a profitable market. Thus the government takes the onus of supplying these goods.