Question

(b) Are health and education pure public goods? Comment
(2 Marks)
(c) Why does measurement of money supply essential from a monetary policy perspective? Explain.
(2 Marks)​

Answer 1

Answer: Education and healthcare are not "pure" public goods. Very few things are. Most people use the term to refer to items that are not pure private goods.

It is essential from a monetary policy perspective as it provides a framework ... measure of money supply' (M1) defined as the sum of currency and demand.