ESSENTIALS OF ECONOMICS
4th Edition
ISBN: 9781464188466
Author: KRUGMAN
Publisher: Norton, W. W. & Company, Inc.
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Question
Chapter P8, Problem 1.1BC
To determine
Political reaction to government funding for the Solana Project.
Expert Solution & Answer
Explanation of Solution
Solana project produces electricity by using solar energy-which is renewable in nature while conventional government spending projects such as building of roads and schools are not using renewable technology. The reaction of government was different in both the projects in terms of spending because government wishes to promote more usage of renewable source of energy. Moreover, it led to job creation in United States.
Economics Concept Introduction
Concept Introduction:
Public goods are characterized as non-rivalrous and non- excludable in nature. Consumption of one person does not affect consumption of another.
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