Question

Government is often necessary to provide __________ goods, such as a cleaner environment. This is because the free market tends to _________ such goods.

Answer 1

Answer: The correct answer is : public; under provide

Explanation: Markets often cannot allocate resources efficiently, this failure is very frequent in the environmental field. Markets tend to provide very few environmental goods such as parks and open places but they do provide too much air pollution. One solution to this market failure is government regulation.