Why do governments use tax money to supply public goods and services, instead of selling them to those people who use them?

2 answers:

8 0

Public goods and services are just that: public--meaning they belong to all citizens. If the government were to sell these services only to those who needed them, only the relatively rich would benefit.

inn [45]4 years ago

6 0

Answer:

There are two main reasons why governments use tax money to supply public goods and services:

They benefit large numbers of people.
If the government didn't intervene, maybe no private company would be able to provide them.

Imagine national infrastructure on private hands. Who has enough money to build all the highways, roads, bridges, etc., that millions of people use everyday around the whole country? Infrastructure projects cost trillions of tax dollars every year, and only the government entities (local, state and federal) can afford them.

The same applies for public schools, parks, the police, the army, etc.

You might be interested in

Appellate courts do not have to hear all of the cases they are presented.<br> True<br> False

frutty [35]

It's false! They have to hear all of them

5 0

3 years ago

In terms of interests in real property, this is not an interest in land but a temporary right to use another's land for a limite

kifflom [539]

Answer:

a leasehold

Explanation:

Leasehold relates to an accounting phrase for a rented resource. Usually the asset is estate such as a house or storage within a building. The lessee buyouts with the property owner in return for a sequence of planned payouts throughout the lease term, for the lawful right to utilize the estate.

Once a lease agreement is signed, to a degree permitted by the deal, the purchaser or tenant starts to construct the accommodation for its activities. In commercial real estate, leaseholds are much more popular whereby supermarkets as well as other facilities can be constructed on the ground but often occur in housing uses, such as homes and condos.

7 0

3 years ago

Abbott Inc. owns 30% of the outstanding voting shares of Berta Inc. On the date of acquisition, the fair value of Berta's equipm

Vitek1552 [10]

Answer: During the year after the acquisition, the undervalued equipment will exceed Abbott's investment revenue by $1,200.

Explanation:

Multiply the amount exceeded of its carrying value by the % shares owned by Abbott.

Then divide the result by the useful life value of Barta's equipments

= (20,000 x 30%) / 5

= $1,200

3 0

3 years ago

define free market system and identify and describe at least three of its major concepts or attributes

ladessa [460]

Free market economies allocate resources through demand and supply with minimal government intervention.

private ownership- all factors of production within the economy are owned mainly by private individuals and organizations.

Free enterprise- owners of factors of production and producers of a goods and services a free to produce what they want through the market forces of demand and supply.

Competition- <span>Companies have a competitive drive, thus better quality goods and more variety of products which are at lower prices. (more productively efficient )</span>

3 0

3 years ago

Difference between Private and public Company company

HACTEHA [7]

A private company, the company's stock, or its net is spread amongst few people, usually people close to the CEO/Owner.
A public company, the company's stock is available to purchase to anyone, and can be spread world wide.

8 0

3 years ago