3 "When goods generate external benefits, the market is unable to produce an adequate supply. This is why the government must provide such goods as police and fire protection, education, parks, and vaccination against communicable diseases. "

(a) D o you agree? Explain.

(b) Does governmental prov1S1on necessarily ensure "an adequate supply"? How would you define "adequate supply"?
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c) Such goods as golf courses, shopping centers, country clubs, neckties, and charity also generate some spillover external benefits. Do you think the government should provide these goods in order to ensure an adequate supply?