The U.S. Post Office is an illustration of which of the following roles of government?
a. providing public goods.
b. a government action designed to enhance competition.
c. adjusting for undesirable market results.
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The answer to this is A. This is an example of the provision of public goods. However, it must be said that this function is fading and is one reason why the post office is not doing as well financially as it once was.
The post office is not an example of an attempt to enhance competition. It is not as if there was one monopolistic postal service before the post office was opened. There were no bad effects of market activities that made the post office necessary. This means that A and B cannot be correct.
At one time, the postal service provided a service that the private sector would not provide. This can be seen as a public good. Therefore A is the best answer.
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