Public Goods in Mixed Economies

Steps:

• Recall that mixed economies rely on markets for private goods but government intervention for public goods due to market failure.
• Classify goods: private goods are excludable and rivalrous; public goods are non-excludable and non-rivalrous.
• Evaluate options: hospitals and TV programs can involve private markets; railways often have regulated private operation; street lighting fits public good criteria.
• Determine least market-allocated: the pure public good requiring collective provision.

Why C is correct:

• Street lighting is a public good (non-excludable, non-rivalrous), leading to free-rider problems where markets underprovide, so governments allocate it via taxes per economic theory of public goods.

Why the others are wrong:

• A. Hospitals: Merit good with significant private market provision through fees and insurance.
• B. Railways: Infrastructure good often allocated via mixed public-private partnerships or privatization.
• D. Television programmes: Private good with market allocation through advertising and subscriptions.

Final answer: C