Question

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Answer 1

Explanation:

The roles of government and the other institutions of society are analyzed with respect to the provision of goods and services. Goods and services are classified, according to the principles of political economy, using the two defined variables: consumption and exclusion. This leads to four kinds of goods: individual goods, toll goods, common-pool goods, and collective goods. The goods can be provided by four different institutions: government, the family, civil society, and the market. Each of these institutions has shortcomings and is subject to failures. Moreover, not all of the four kinds of goods can be supplied by each of the four institutions. The characteristics of the goods and of the supplying institutions result in a table showing which types of goods can be provided by which of the four institutions. So, who should do what? How should the responsibility for providing goods and services be allocated between government and the three private institutions of society? What kinds of collaboration—including privatization—can be applied to achieve a better functioning society? The discussion is summarized in a decision tree that shows how one can consider the different kinds of goods, the different institutions, and the collaboration needed for a better

Answer 2

Explanation:

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