Which of the following is an example of public provision as a policy instrument?

• A. Regulation
• B. Taxes and subsidies
• C. Public provision
• D. Market-based incentives

Answer: (C)

Public provision means the government directly supplies a good or service to people, paying for it and controlling how it is delivered. This approach ensures universal or prioritized access to essential services because the state acts as the provider rather than relying on private markets.

So, when we think about which instrument fits this idea, it’s the one where the government itself delivers the service—for example, government-run schools, public hospitals, or public housing. Those are direct government provisions of services.

The other instruments work differently. Regulation sets rules and standards to control behavior but doesn’t in itself provide the service. Taxes and subsidies change the cost landscape to influence decisions, rather than supplying the service directly. Market-based incentives use price signals or competitive mechanisms to steer behavior without the government being the provider of the service.