Which is provided by governments in the circular flow of the free-market system?

Question

Responses

interest-free loans

interest-free loans

labor and investment

labor and investment

public goods

public goods

individual goods

individual goods

Answer 1

In the circular flow of the free-market system, the correct response is public goods.

Governments provide public goods, which are non-excludable and non-rivalrous resources that are made available to all members of society, such as national defense, public parks, and education. These goods are not typically provided by the private market due to the lack of profit incentive.