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14. Which of the following is the most accurate explanation of why governments supply public goods in
market economies?
A. Markets are unlikely to for to supply public goods.
B. Governments are not subject to information failure.
C. Only taxes can be used to fund the provision of public goods.
D. Governments can ensure that imported raw materials necessary to product public goods have
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zero-rated customs duties.
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Answer
A. Markets are unlikely to for to supply public goods.