5.5 Micro Flashcards
1
Q
What is merit good?
A
Is one that is deemed to be beneficial to society
2
Q
What does the underconsumption of merit goods lead to?
A
Market failure
3
Q
With a merit good, which is greater? Private benefit or social benefit?
A
Social
4
Q
What are demerit good?
A
Where private benefit is greater than social benefit
They are over consumed
5
Q
What is information failure?
A
Consumers don’t have perfect knowledge
