Which of the following refers to goods and services provided by the government funded by tax dollars?

The term that refers to goods and services provided by the government and funded by tax dollars is public goods and services. These are designed to be available to all members of society and are typically non-excludable and non-rivalrous, meaning that one person's use of them does not reduce their availability to others. Examples include national defense, public education, and infrastructure such as roads and bridges.

Public goods are characterized by the fact that the government steps in to provide these services because private markets may not supply them efficiently, primarily due to the inability to charge users directly. This is essential for ensuring that everyone has access to these necessary services, which can enhance overall societal welfare.

In contrast, private goods refer to products that are both excludable and rivalrous, meaning they can be sold to individuals who pay for them, like food or clothing. Market failures occur when the allocation of goods and services by a free market is not efficient, often justifying the need for public intervention. Externalities refer to costs or benefits incurred by a third party who did not choose to incur that cost or benefit, highlighting market inefficiencies but not directly relating to goods and services provided by the government.