Question
Which is provided by governments in the circular flow of the free-market system?
Responses
interest-free loans
interest-free loans
labor and investment
labor and investment
public goods
public goods
individual goods
individual goods
Responses
interest-free loans
interest-free loans
labor and investment
labor and investment
public goods
public goods
individual goods
individual goods
Answers
GPT-4o mini
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.
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.