Ex.20. Read the text again and decide whether the following statements are true (T) or false (F). Correct the false statements

1. It simply doesn't work to sell public goods and defense services to those who want them and then not to protect the people who refuse to help pay for them.

2. There are a lot of true public goods − goods that can be jointly consumed.

3. An external cost is a cost reflected in the market price, being a part of the production costs.

4. Public education is the largest and most significant example of government expenditures and support for a service regarded as having significant external costs.

5. Governments in market economies ensure that the legal rights of consumers and producers to own and trade economic resources are clearly recognized and protected.

6. Social welfare programmes subsidized by the government are aimed at making tax policies and the after-tax distribution of income fairer.

7. Monetary policy is the way in which a government charges taxes or spends money to stimulate the national economy in times of high unemployment and low inflation, or to slow it down in times of high inflation and low unemployment.

8. Monetary and fiscal policies are stabilization policies that can be used to avoid severe periods of unemployment and inflation, except in cases of major natural and human disasters − such as wars, floods, earthquakes, and droughts.