Which of the following costs are incurred by the government in the supply of water?

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Laying pipes for distribution

Transportation of water

Treating impurities

All of the above

answer is D.

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Detailed Solution

Laying pipes for distribution, Transportation of water and Treating impurities are incurred by the government in the water supply. The government uses this revenue to implement and maintain public facilities provided to the people. In the water supply system, the government uses the money to pump the water, lay pipes for the distribution of water, Transport water over long distances, treat impurities and collect and treat wastewater. Cash for all these activities is generated through taxes and the amount charged for water. Public facilities once created benefit many people at the same time.

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