Economic functions of the state
Answers are for parents and teachers.
1
Write five services in your town or district and classify them as “public good” or “private good” (give the reason).
For example: road lighting — public; fire service — public; barbershop — private; café — private; flood barrier — public.
2
The state pays 600 000 so‘m per month for each stipend. How many so‘m will 1 200 students receive over 9 months in total?
6480000000
3
Give one example each of a positive and a negative external effect and write how the state reacts to each.
Negative: smoke — fines and a requirement to clean. Positive: education — financing from the budget and benefits.
4
Give one argument for each of the views “the state’s interference in the economy should be reduced” and “should be increased”.
Reduce: too much interference limits freedom and initiative. Increase: the market cannot by itself solve monopoly, external effects and public goods.