ECONOMICS
MARKET FAILURES
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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TRUE
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FALSE
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Either A or B
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None of the above
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Detailed explanation-1: -Merit goods are commodities that the public sector provides free or cheaply because the government wishes to encourage their consumption.
Detailed explanation-2: -A merit good has two characteristics: People do not realise the true personal benefit. For example, people underestimate the benefit of education or getting a vaccination. Usually, these goods also have a positive externality.
Detailed explanation-3: -Merits of a Sample Investigation This is because you collect data only from a fraction of the entire population. Therefore, it is cost-efficient. Time-efficient – In sampling, you require less time to collect, analyze, and interpret the data since you are working only on a fraction of the population.
Detailed explanation-4: -Social goods: are goods with non-exclusion principle and their supply is jointly made. Merit goods: are those public goods which results in interference with consumer choices.