Merit goods have received considerable attention toward the end of this chapter. Can concerts and other publicly provided services be rationalized using these ideas?
What will be an ideal response?
Yes, they fit the definition of a merit good, but no judgment should be made concerning the
efficiency of such endeavors.
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Purchases of foreign assets by U.S. residents are tabulated in the U.S. balance of payments as a:
A. capital inflow. B. capital outflow. C. current account outflow. D. unilateral transfer.
As compared to the market clearing price, the total amount of consumer surplus and producer surplus is
A. the same as a government-imposed price floor that is higher than that market clearing price. B. greater for a government-imposed price floor that is higher than that market clearing price. C. greater for a government-imposed price ceiling that is lower than that market clearing price. D. smaller for a government-imposed price ceiling that is lower than that market clearing price.
A quota on sugar harms domestic producers of sugar.
Answer the following statement true (T) or false (F)
Based on the 1997 Crisis and your own experience, what are the main weaknesses of the East Asian economies?
What will be an ideal response?