The food processing, tourism and education industries each make an important contribution to the government budget of the US state of Wisconsin. The education industry contributes more than the other industries because wages in education are higher. It also helps to increase the state’s population. This generates not only private benefits but external benefits as well.
(a)[2]
Define the term government budget.
(b)[4]
Explain, using examples, how private benefits differ from external benefits.
(c)[6]
Analyse why workers in education may receive higher wages than workers in other industries.
(d)[8]
Discuss whether a large population is beneficial for the 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: “A forecast or plan” …