What happens if government provides more of a public good (e.g., national defence) than is efficient? Who is hurt? Who benefits?

A.Efficient provision of public good will benefit everyone in the society.

B.Everyone in the society will benefit from the increase in the public good.

C.Inefficient provision of a public good pulls resources away from other, more valuable goods, and makes taxpayers bear the burden. People with a very strong preference for national defence would benefit as well as those involved in providing national defence.

D.Everyone in the society will be hurt as valuable resources are wasted.