Question

Johan van der Merwe spends his entire monthly entertainment budget of R1 000 on movie tickets and paint ball games. Assume that the price of movie tickets falls from R100 to R50 while the price of paint ball games stays the same at R50. Use indifference curve analysisto explain both equilibrium positions for Johan along with his price consumption curve. Indicate movie tickets on the vertical axis and paint ball games on the horizontal axis.​

Answer 1

Through privatizing, the role of the government in the economy is condensed, thus there is less chance for the government to negatively impact the economy (Poole, 1996). ... Instead, privatization enables countries to pay a portion of their existing debt, thus reducing interest rates and raising the level of investment.