Externalities, merit and demerit goods and public, quasi public and private goods

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  • Created by: Jade
  • Created on: 01-12-12 15:54

1. Value judgements often have to made. Usually by government - assumption is made that these organisations know better than individuals what is good or bad for them. Are all?

  • Problems when considering whether certain goods are merit or demerit goods
  • Characteristics neccesary when considering whether a good is merit or demerit.
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Other questions in this quiz

2. What are externalities ?

  • Externalitites occur when the marginal private cost is higher the marginal social cost.
  • Externalities occur when a third party is affected by the economic decisions of others.
  • Externalities occur when a first party is affected by the economic decisions of others

3. If only the private costs/benefits were reflected in the price of the product then it would not accurately reflect the true cost, therefore it will lead to either over or under production.

  • True
  • False

4. Education and health are examples are?

  • Merit goods
  • Demerit goods

5. Demerit goods, have ______ externalities arising out of their use

  • Negative
  • Positive

Comments

izzy

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very good quiz!

davidsalter

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This 10 question quiz can be used to provide a brief respite from intensive reading and highlight areas for further study.

Alvarodasilva17

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(y) 

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slap my botty

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