What can be inferred about the relationship between taxes and public goods?

The correct answer highlights the critical role that taxes play in funding public goods. Public goods are defined by their characteristics of being non-excludable and non-rivalrous; this means that once they are provided, individuals cannot be effectively excluded from using them, and one person's use does not diminish the availability to others. Examples include national defense, public parks, and street lighting.

To provide these goods, funding is necessary. Taxes, which are compulsory contributions from individuals and businesses to the government, offer a systematic way to generate revenue that can be allocated for public goods. This ensures that everyone benefits from these goods without facing direct charges or fees that might limit access.

While other funding mechanisms, like donations, could contribute to certain aspects of public goods, they are often inadequate to fully cover the expenses and ensure equitable access for all citizens. Hence, taxes are established as a primary and essential means to ensure that public goods are adequately funded and maintained.