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Q.

The government spends on welfare activities as there are several things needed by society as a whole and the ____ sector cannot provide them at a reasonable cost.


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Detailed Solution

The government spends on welfare activities as there are several things needed by society, and the private sector cannot provide them at a reasonable cost.
The government regularly undertakes activities that are focused on the welfare of society. They have to spend on such activities because several goods and services are required by community as a whole. The private sector will charge a high price for such services. The government provides security services like defence and police forces, education, health care, and infrastructures like highways and electricity. Additionally, the government has to take responsibility for developing rural areas as private agencies will not engage in the task.
 
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