Direct state provision of goods and services
In many countries, certain goods or services are provided by the government. These include such services as public education, healthcare, transportation, among others Many of these services are subsidized or free.
Though most people would consider such services as necessary and beneficial for the economy, economists find fault with it. This is because by providing a subsidised or free service the government is in effect, creating a monopoly. These services are paid for by taxes collected from citizens. Hence, though citizens are paying for the service they do not have any choice or say in the type of service they get. The price of the say in service, that is tax, is also determined by the government and not related to demand. Moreover, government-run services are often less efficient than privately-owned services because they do not have to worry about producing efficiently and cannot be forced out of the market.