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Here we are looking at macroeconomics.

A budget deficit means that Government spending (G) is greater than Tax revenue the government receives (T). This means there are more injections into the eco...

Firstly, you should define a minimum wage as a price ceiling set above the equilibrium wage level (where demand equals supply). It can be introduced into markets where wages are too low, as a government i...

Merit goods are products and services which have positive externalities and thus have a positive impact on society. For example, fruits and vegetables which not only have a private benefit to the consumer...

The effects on costumers and producers when a specific tax is imposed are dependent on the type of good. As for this case we consider the cigarette market, the demand for them will be inelastic. This natu...

This question tests the student's knowledge on the topic of negative externalities while also inviting them to think of its application in the real world.

The buiding of a new airport is a common t...