Goods like National defence roads etc can not be provided through the market mechanism i.e by transactions between individual consumers and producers and must be provided by the government. This is a matter of :

Allocation function

The correct answer is option (2) : Allocation function

Explanation :

The allocation function of government refers to the role it plays in allocating resources in the economy, especially for public goods and services that cannot be efficiently provided through the market mechanism. Goods alike national defense and roads are considered public goods, and their provision falls under the allocation function of the government. This involves decisions on what goods and services should be produced and in what quantity, considering societal needs and priorities.