A government school is built by private builders in a residential neighbourhood. The builders ignore the effects of noise and disturbance. Why does a free market fail to take into account these external costs of building the school? A Education is a public good which benefits society. B Few people who live near the school object to the building. C The government believes schools should be built privately. D These costs are not paid for by the builders.

A 10% tax is placed on a good. What type of product would be most likely to face the biggest impact on its equilibriu…

In 2009 the Australian government made a payment of $900 to those who earned less than $100000 per year. How would th…

As part of a privatisation policy, a government deregulates bus services and sells off its public sector bus services…

How does a rise in the price of factors of production affect the aggregate supply (AS) curve?

Relative weights are used in calculating the index of retail prices to reflect the different

A country has a fixed exchange rate. What is likely to result in a deterioration in its balance of payments?