Question 22Which of the following statements is false?a. Saving a portion of one's income in a pension is a merit good because many do plan sufficiently for life after workb. Consumption of large quantities of food is addictive and contributes to pressures for the health sectorc. In the absence of public provision of healthcare, private healthcare would charge higher premiums for those who are lesshealthy when they sign upd. Free education for all funded by government is essential because students can take loans to fund their studiesQuestion 23A rise in demand for free healthcare services in South Africa while financial resources allocated to health are limited willlead to:a. lower cost of health servicesb. decreased efficiency in healthcare provisionc. higher cost of education servicesd. loss of jobsQuestion 24If South Africa has very high debt to GDP levels, which of the following statements about this debt is INCORRECT?a. If all the debt was financed domestically, then this debt would not be a burden for future generations.b. If all the debt was financed domestically, then it would attract interestc. Very debt levels place a country at a risk of defaulting on repaymentsd. Very high debt levels restrict a government's ability to addressQuestion 25Why might a government promote the establishment of a monopoly?a. to encourage domestic competition amongst firms.b.to reduce costs of producing an expensive product.c. to generate excessive profitd. to provide an essential product that is under-produced due to its costs Question 19Which of the following best captures the notion of external cost?a. Drugs damage the health of the user.b. Floods reduce the output of commercial farms.c. Passive smoking damages the health of nearby non-smokers.d. a smaller harvest leads to lower income for farmers.Question 20The optimal level of output can be achieved by levying a tax on a company producing a negative externality. This should beset a level that is equal to:a. the marginal cost of a curveb. the social marginal cost curvec. the difference between the social marginal cost and the firm's marginal cost.d. the total of the social marginal cost and the firm's marginal cost.Question 21If we assume that making and consuming a product leads to externalities, which of the following would be the Paretoefficient level?a. If marginal private benefit matches marginal social benefit.b. If marginal social cost matches marginal social benefit.c. If marginal private cost matches marginal private benefit.d. If marginal private cost matches marginal social benefit.Question 22Which of the following statements is false?a. Saving a portion of one's income in a pension is a merit good because many do plan sufficiently for life after workb. Consumption of large quantities of food is addictive and contributes to pressures for the health sectorc. In the absence of public provision of healthcare, private healthcare would charge higher premiums for those who are lesshealthy when they sign upd. Free education for all funded by government is essential because students can take loans to fund their studies

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Dear student, you have asked multiple questions in a single post. In such a case, I will be…