Answer:
Government in a market system can increase economic efficiency by collecting taxes in order to subsidize the production of
public and quasi-public goods.
Explanation:
Public and quasi-public goods can only be provided efficiently by the government or quasi-government organizations for the benefit of every member of the society, without exhibiting the characteristics of a private good. Public and quasi-public goods are known to be non-excludable and non-rivalrous, with partial diminishability and rejectability.
