Public goods provide which of the following advantages to the general population A number of public ...........

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Public goods provide which of the following advantages to the general population?

A number of public goods are affordable which when privately provided are expensive.
Public goods create a social security net for the downtrodden and poor, especially in times of economic recession.

Which of the above is/are correct?

1 only

2 only

Both 1 and 2

None

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Explanation:

Statement 1: Sanitation, education, drinking water, health etc. come under the category of public goods and services. When provided privately, they often become unaffordable for the poor masses. When they are provided at a lower price, people can afford them and the money that is spare can be spent in the market.

Statement 2: During recession, often the demand for labour goes down and the first ones to be laid off from the job are the contract workers who are usually at the lower rung of the society. If public goods like health, education, drinking water etc. are provided at low cost or free of cost, it gives them a safety net even as they are unemployed. The money saved from spending on these public goods can be used for private consumption