The provision of goods and services through the public sector

  • Jack Harvey
Chapter
Part of the Macmillan Master Series book series

Abstract

In the market economy, supply responds to price signals. The main strengths of this method of allocating resources are (i) that, through demand, individual preferences are indicated by their effect on the price of a good; and (ii) that, through the profit motive, resources are used efficiently in supplying goods. Chapters 3–6 have explained how both are achieved, and how some inefficiencies, e.g. those of monopoly power, may be corrected by government action.

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Copyright information

© Jack Harvey 1994

Authors and Affiliations

  • Jack Harvey

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