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. What is meant by non-rivalry?

  • Consumption by any one person does not affect consumption of any others
  • People can benefit directly from the consumption of a public good but do not contribute towards its provision
  • Individuals cannot be excluded from their consumption. They are provided for all, irrespective of whether they have paid for the product indirectly through taxation.
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Other questions in this quiz

2. Merit goods tend to have ________ externalities associated with their consumption

  • Positive
  • Negative

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. Merit goods and demerit goods are both examples of ?

  • Both
  • Information failure
  • Market failure

5. What are negative externalities?

  • Negative externalities occur when the social costs are greater than the private costs.
  • Negative externalities occur when the private costs are greater than the social costs .
  • Negative externalities occur when the first parties do not benefit from third party actions.

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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