Thompson

Question 1

According to Thompson, who should shape city’s economies?

Answer 1

Economists

Question 2

Which three types of goods does Thompson distinguish?

Answer 2

• Public goods: provided by government to everyone for free (ex. police, libraries, streets, etc.). Prices are implicit, not explicit (difficult to calculate exactly)
• Merit goods: provided by government for free regardless of people’s willingness/ability to choose/pay for them (ex. free vaccinations).
• payments to redistribute income: one group in society pays, another group (elderly, blind, handicapped, etc.) receives income/support

Question 3

Why does Thompson believe the three types of goods are sometimes not useful?

Answer 3

Because they are not implemented well. Ex. subsidies for golf clubs (rich shouldn’t need them?)