Question

People have a demand for sweaters, and the market provides sweaters. There is evidence that people also have a demand for national defense, yet the market does not provide it. What is the reason the market does not provide national defense? Is it because government is providing national defense and therefore there is no need for the market to do so, or because the market won’t provide it?

Answer 1

Answer -

The national defence equipments are mainly provided by the government or by the institutions which are authorized by the government to manufacture such goods.

This is because if the private market manufactures such goods it may compromise with the quality of the goods which could prove to be adverse for the country. The private markets in order to earn the huge profits may not do justice with the set standards and the national safety may be compromised.

Hence the government does not give rights to the market to manufacture the defence equipments.