2. Define the following terms:

a. Merit Goods.

b. Public Goods.

Local rule is about government collects tax to provides some services. Like building road and giving health care.

2, 
a. Merit goods are good with both personal benefit and social benefit. Merit goods have more benefit than people think.

B, Public Goods are goods that all the people can use, such as park and street light.

Producer: supply merit and public good. Employer: employ people to work in public sector. 

2. Define the following terms:-
a. Merit Goods are goods or services which when consumed create positive spillover effects in an economy.
b. Public Goods are goods and services that are non-excludable and non-rivalrous.

?

2.     Merit goods are demanded to have social benefits yet are under-provided and under-consumed without govt. intervention or provision.

3.     Public goods are commodities or services that benefit all members of society, and which are often provided for free through public taxation. 

3.Public Goods are goods that all the people can use, such as park and street light.

    1. Name the two types of roles played by the Government in an economy with one example each. 

-provide services:for example, road lights and park.

-make up policies: some policies about tax or some benefits

    2. Define the following terms

 a. Merit Goods- merit goods are the goods that the government feels that people will under-consume, and it's thought to be provided free. 

 b. Public Goods.-are the goods that benefit all members in the society, are provided for free through public taxation.Are all non-excludable and non-rival.

         

2. Define the following terms:
a.Merit Goods.

     Merit goods are deemed to have social benefits yet are under-provided and under-consumed without government intervention or provision.

b. Public Goods.

  

•The recent government debt accounted for 23% of GDP, a decrease of 8.4% from the previous data

•The recent government budget as a percentage of GDP is -29.90%, the same as the previous data

•The recent government spending is 1286.00 million, 1417 million down from the previous data

•The military expenditure is  465.00 million dollar, an increase of 76 million dollar compared to the previous data.

•Deficit fiscal policy is a short-term policy used during the economic downturn. From this perspective, fiscal deficit is a means of national macro-control, accumulate huge social capital, support economic restructuring. In fact, the fiscal deficit is a national goal for economic development and social stability. 

The deficit fiscal policy breeds the seeds of inflation, which may cause inflation. To some extent, there is a fixed relationship between the deficit finance and the inflationary rise of the price level. The reason is not hard to find. In a society, deficit finance leads to an increase in the total demand for money, while the existing supply of goods and services does not increase in the same proportion, which will inevitably lead to an inflation gap in the economy, leading to an increase in the price level. When the fiscal deficit does not lead to an increase in the money supply, the deficit is directly related to demand-pull inflation. 
  For example, in 2008, Venezuela began to issue new coins. One thousand old coins can be exchanged for one new currency, and the money directly depreciates nearly a thousand times, 2.15 new currency for one dollar.
 By July 2018, 172,368 was exchanged for 1 U.S. dollar, depreciating more than 80,000 times.
In August 2018, another new currency was issued, 100,000 old currency was exchanged for one new currency, and the exchange rate of the U.S. dollar became 1 USD 6 million.
 The Venezuelan currency has depreciated three million times relative to the U.S. dollar in ten years.
  The man who escaped from Venezuela described the scene he saw, "Looking at the pile of money like waste paper, you can't imagine the people there living in the 21st century.

 
 Advantages 

 Removes unfairness

 Citizens of a country are taxed differently depending on their incomes. 

 For example, a citizen who earns $100,0000 annually will pay significantly high taxes than the citizen who earns $100,000 annually. Sales tax removes this type of unfairness and a citizen would have to pay tax according to the number of goods or services they consume.

  

  Revenue for the nation

  Sales tax is incurred on each item whether it is bought to use as a day-to-day necessity or for luxury. The tax levied on each project will not be very high, but the accumulation will bring a large amount of income to the country, in this way, those can be used for the well-being of the nation or for the well-being of the nation’s citizens. 

  Abuse of taxes on industries

  Sales taxes can be used politically to destroy an industry or a company. There are certain products whose prices have to be kept high to make a profit. In the scenarios, where the tax on goods produced by one company is higher than the similar goods produced by other similar company. The chances of survival of those companies will reduce.

  Harmful for industries

 Sales tax increases the burden on the manufacturing industries. These taxes discourage industries because of the high cost of production and less profit.

Income RMB Taxes paid Tax rate (%)

100 10          10

500 100        20

1000 400   40

___proportional_____________Tax

Income RMB Taxes paid Tax rate (%)

100 25          25

500 125        25

1000 250        25

____regressive___________Tax

Income RMB Taxes paid Tax rate (%)

100 40          40

500 150        30

1000 200        20

Income RMB Taxes paid Tax rate (%)

100           10

500           20

1000           40

___proportional_____________Tax

Income RMB Taxes paid Tax rate (%)

100           25

500           25

1000           25

____regressive___________Tax

Income RMB Taxes paid Tax rate (%)

100           40

500           30

1000           20

c. Using a demand and supply diagram explain the effect of imposing a tax on carrier bags, on their market. 

B, Brunei oil and natural gas deposits that contribute to a significant portion GDP, while the Bahamas, the Cayman Islands, and Bermuda rely on tourism and the extremely high living costs to drive wealthy individuals into their country.（Niche tourism）

b. Monaco residents pay no income tax because the gambling industry is flourishing so the government  can gain a large amount of revenue form windfall tax so that they decided to cease collecting income tax which is much lower than windfall tax.

Bermuda have scarce natural resources, a small population and a weak economic base. The government's tax-free or low-tax policies are also designed to attract tourism and investment and boost the local economy. Bermuda is already a very remote place, and people's economy is very poor, so they need to promote economic development through tourism and the sea, so people use tourism to promote economic development, so they do not require pay income tax

Investment expenditure

Government spending 

Export (X)

Import (M)

-gross domestic product :C+I+G+(Export- Import)

C is Consumption expenditure

I is Investment expenditure

G is government spending

X is export earning

M is Import expenditure 

GDP refers to gross domestic product. It measures the monetary value of good and services produced within a country for  a given period of time, usually a year.

GDP=Consumption+investment+Government spending+(export earning-import expending)

GDP=C+I+G+(X-M)

GDP is the monetary value of all finished goods and services made within a country during a specific period.

GDP=G(government spending)+I(investment)+C(consumption)+(X-M)(export-import)

 

GDP = C + I + G + (X – M)

C: consumption for individual

I: investment for firm

G: government spending 

X: export 

M: import 

(X - M): net export

2.       Chapter 32 - Textbook page 234, Chapter review questions 1 to 5. 

3.       3. Chapter 34 – Textbook page 253, Chapter review questions 1 to 8.

2. Fertility policy (e.g., encourage childbirth and provide subsidies to families with second children)

3. Develop new industry 

4. Invest more on education, health care (e.g., improve teacher’s level)


Please write more specific details. Please mention the names of the group members.

2. Fiscal policy---- reduce income tax to boost disposable wealth. 

3. Poverty---- A. provide high accessibility of education (1. extend compulsory education 2. Produce more school).  B. produce more infrastructure. C. control the birth rate, because the amount of aging people and over population.

4. Investor communities

Control birth rate ( Only allow to have two children)   
Spent more money to help rural region( education  healthcare...)

  He wrote his first article on economics, published in The Morning Chronicle, at the age of 37. The article advocated for the Bank of England to reduce its note-issuing activity. His 1815 book, "Principles of Political Economy and Taxation," contains his most well-known ideas. Ricardo's principal contributions to economic theory are described below.