Provision of Public Services
Business: Cambridge International GCSE (2027 Exams), topic 6.1.3
Provision of Public Services
The government can intervene in the market and provide a service. This is if they believe it is being undersupplied in the market.
Why the government provides a public service
- Not every government intervenes to the same extent in their respective market.
- The government chooses to intervene if they believe a service or good is underprovided in the market.
- As the government is (in theory) not motivated by profit, they can intervene and supply a good or service without monetary incentive.
The NHS
- The NHS (UK health service) is provided by the government.
- The NHS is funded by taxes on the public.
- The NHS is not profitable.
Test yourself on Provision of Public Services
Does every government intervene in their national market to the same extent?
Who provides the NHS?