ECONOMICS UNIT 1

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Free Good
A good that has no opportunity cost
1 of 9
Complementary Goods
Goods or services that are frequently consumed together
2 of 9
Substitute Good
Goods or services that can be used instead of each other
3 of 9
Normal Good
A good that has a positive income elasticity of demand because demand for it will increase as real incomes increase.
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Inferior Good
A good that has a negative income elasticity of demand for it will decrease as incomes increase.
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Merit Good
A good or service that would be under provided by the free market because consumption of the good or service results in substantial external benefits- healthcare etc.
6 of 9
Demerit Good
A good or service that would be over provided by the free market because its consumption results in substantial external costs- alcohol etc.
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Public Good
A good or service that would not be provided by the free market because its characterised by non-excludability and non-rivalry.
8 of 9
Private Good
A good that is not characterised by non-excludability and non-rivalry.
9 of 9

Other cards in this set

Card 2

Front

Complementary Goods

Back

Goods or services that are frequently consumed together

Card 3

Front

Substitute Good

Back

Preview of the front of card 3

Card 4

Front

Normal Good

Back

Preview of the front of card 4

Card 5

Front

Inferior Good

Back

Preview of the front of card 5
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