Types Of Goods Flashcards
1
Q
Merit good…
A
a good or service which provides greater social benefits when it’s consumed than private benefits
2
Q
Demerit good…
A
a good or service which has greater social costs when it’s consumed than private costs. Tends to be over-consumed
3
Q
Public good…
A
a good which people cannot be stopped from consuming, even if they’ve not paid for it, and the consumption of which doesn’t prevent others from benefiting from it
4
Q
Inferior good…
A
a good for which demand decreases as income rises
5
Q
Normal good…
A
a good for which demand increases as income rises
6
Q
Substitute good…
A
a good used as an alternative to another good
6
Q
Complementary good…
A
a good often used with another good -these goods are in joint demand
