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Essay text:
Provision of goods and services
? Provide public infrastructure (e.g. roads, power, communication and health)
? Government provides three types of goods
i. Private goods: Provided on user tax basis e.g. water. Include important goods that relatively inelastic which could harm lower income earners.
ii. Public goods: Non exclusive and non rival in consumption
iii. Merit goods: Heavily subsidized goods aimed to create external benefits for third parties as free market only values private owners. e.g. state education
2. The Provision of welfare Services
? Government has role to provide financial security to lower income earners
? Federal government allocates over 40% of its budget for welfare services
3...
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