Merit and Demerit Goods

Question 1

Merit Goods benefit society but Demerit goods do the opposite:
Merit goods have greater social benefits than private benefits

Answer 1

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Question 2

Merit goods benefit society but Demerit goods do the opposite:
Demerit goods have greater social costs than private costs

Answer 2

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Question 3

Merit goods benefit society but Demerit goods do the opposite:
Other points

Answer 3

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Question 4

The market underprovides merit goods and overprovides demerit goods: Merit goods generate positive externalities

Answer 4

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Question 5

The market underprovides merit goods and overprovides demerit goods: Demerit goods generate negative externalities

Answer 5

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Question 6

Short-term decision-making can affect the consumption of goods

Answer 6

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Question 7

Governments can intervene in markets for merit and demerit goods

Answer 7

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