The market system does not produce public goods because:
O there is no need or demand for such goods.
O private firms cannot stop consumers who are unwilling to pay for such goods from benefiting from them
O public enterprises can produce such goods at lower cost than can private enterprises.
O their production seriously distorts the distribution of income.

Public choice economists hold that politicians will:
O favor programs entailing immediate and clear-cut costs and vaguely defined or deferred benefits
O follow policies leading to an optimal allocation of resources between public and private sectors
O favor programs entailing immediate and clear-cut benefits and vaguely defined or deferred costs.
O objectively weigh the costs and benefits of various government programs and vote accordingly

Public goods are those for which there
O is no free-rider problem
O are no externalities
O are nonrivalry and nonexcludability
O are rivalry and excludability