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The governments of country A and country B spend the same amount each year. However, the types of spending differ dramatically between the two as
The governments of country A and country B spend the same amount each year. However, the types of spending differ dramatically between the two as the following table shows:
Share of government spending on: | Country A | Country B |
functions relating to dealing with market externalities and public goods | 25% | 75% |
the provision of merit goods and efforts to restrict the production of demerit goods 75% | 25% |
The country whose government is more heavily involved in the economy through economic functions of government as opposed to political functions is
(enterĀ a single letter: 'A' or'B'
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Lets analyze the given information and draw insights from it Step 1 Understand the Terms 1 Market Externalities and Public Goods Market Externalities Costs or benefits that affect third parties outsid...
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