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Public goods are financed by the government through taxation to avoid the free-rider problem, with the government primarily responsible for providing them.
Public goods are typically financed by the government through taxation to avoid the free-rider problem. While private firms may also have a role in producing some public goods under government contracts, the primary responsibility lies with the government to provide public goods such as national defense, law enforcement, and park maintenance. The distinction between the public sector (government) and the private sector is crucial in understanding who finances public goods.
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