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QUESTION 1
Introduction
According to Lienert (2013) public goods a commodity or service that is provided without profit
to all members of a society, either by the government or by a private individual or organization
for the benefit or well-being of the public. Public goods are provided as a whole to the society by
the government and the consumption of these goods by an individual doesn’t reduce its
availability or doesn’t exclude others from consuming it. Therefore, public goods are non-rivalry
and non-excludability. Examples of public goods include defence, policing, streetlights, and
lighthouses.
The main aim of public spending, particularly for public service delivery, is to maintain happy
and healthy communities. When phrased in such a way, public procurement turns into a highly
strategic and creative business. When the government spend the income they receive in the
provision of public goods this is the benefit that will be incurred by the public as a result of
public expenditure. According to Pauw (2009) the benefits that are incurred by the public should
be measured to ensure that the public funds are used for its intended purpose which is to satisfy
human wants and needs by providing public goods.
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