The government can solve the problem of private sector under provision of a public good, however...

Transcribed Image Text:

The government can solve the problem of private sector under provision of a public good, however this intervention leads to a host of issues. With this in mind explain the following concepts; 1. The crowding out effect II. III. IV. Selection of the right mix of public and private sector provision. Difficulty in measurement of the costs and benefits of public good Hint: the dilemma of budgetary costs and economic costs Difficulty in determining public preference for public goods and the three problems that arise. The government can solve the problem of private sector under provision of a public good, however this intervention leads to a host of issues. With this in mind explain the following concepts; 1. The crowding out effect II. III. IV. Selection of the right mix of public and private sector provision. Difficulty in measurement of the costs and benefits of public good Hint: the dilemma of budgetary costs and economic costs Difficulty in determining public preference for public goods and the three problems that arise.