A large number of people from the Philippines are employed in other countries, often in sectors that supply merit goods and public goods. In 2020, the Philippine government collected greater tax revenue. Some of this was used for policies aimed at raising life expectancy and some for policies aimed at cutting unemployment. The country’s unemployment rate was also influenced by an increase in the country’s foreign exchange rate.
(a)[2]
Identify two factors influencing which country a person decides to work in.
(b)[4]
Explain, with examples, how a merit good differs from a public good.
(c)[6]
Analyse how an increase in government spending could raise life expectancy.
(d)[8]
Discuss whether or not a rise in a country’s foreign exchange rate would benefit its economy.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Wage levels / GDP per head” …