Public goods
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On public goods with non-excludability
In a free market, it is not appropriate to provide non-excludable and non-competitive public goods. Non-excludability refers to a situation where individuals cannot choose to not use a good or service. When certain individuals can benefit from a good without paying for it, others may also use it without paying, leading to a situation where people seek to benefit without paying. When the number of people who seek to benefit without paying increases, the problem of free-riders arises, leading to a shortage of supply and ultimately making it difficult to create beneficial public goods. Examples of pure public goods include "national defense, police, and dams," but if left to the mechanisms of a free market, funding for such projects may become difficult to obtain.
Therefore, by taking on the role of funding construction, the government can build public goods that are useful for daily life, allowing the general public to benefit.