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1.Most countries do not provide higher education (beyond secondary school education) as a public good. However, it is encouraged, and the cost subsidised, in many countries, including Australia. a) What are the considerations in deciding to pursue higher education? b) What are the benefits to society and the economy from its citizens undertaking higher education? c) Use a graph to show the effect of externalities on equity, efficiency and the allocation of resources.

2.wel inside Which of the following statements are correct? The nominal value of a good is its value in terms of some other good, service, or bundle of goods money while the real value is value in terms of money. The nominal money supply is the money supply expressed in terms of its purchasing power in terms of goods. A decline in the general price level results in an increase in the real money supply and more goods and services can be bought. If the nominal money supply is R800 and the price level is R20, then the real money supply is 40. Given the price level, the nominal money supply divided by the price level defines the real money supply. 1. 2. 3. 4. 5. a, c, d and e Only c, d and e Only a, d and e Only b, d and e Only d and e