A large number of people from the Philippines are employed in another country, often in industries that supply merit goods and public goods. In 2020, the Philippine government collected more tax revenue. Part of this was used on policy measures to raise life expectancy and part on policy measures to reduce unemployment. The country’s unemployment rate was also influenced by an increase in the country’s foreign exchange rate.
(a)[2]
State any two influences that affect the country a person chooses to work in.
(b)[4]
Explain, with examples, how a merit good differs from a public good.
(c)[6]
Analyse how higher government spending could raise life expectancy.
(d)[8]
Discuss whether a rise in a country’s foreign exchange rate would help its economy or not.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Pay / GDP per head” …