Question: Question 1 {25 marks} a} Is state school education a public good? Explain your answer using references to the lectures material. {1n marks} b] State

 Question 1 {25 marks} a} Is state school education a public

good? Explain your answer using references to the lectures\" material. {1n marks}

Question 1 {25 marks} a} Is state school education a public good? Explain your answer using references to the lectures\" material. {1n marks} b] State secondary schools are nanced by public money. Assume that the government decides to increase the salaries of teachers in secondary state schools to be able to attract more qualied teachers. The increment in government spending is equal to 10 million pounds and the marginal propensity to consume {MFG} is 0.3. Assume no taxes and imports. Using a graph, sho'lIlII he'll-lI this decision will affect the equilibrium outcome of the economy. Explain clearly which 1llrariables will be affected and by how much. Discuss the intuition behind your results. {15 marks}

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!