ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Merit goods
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Demerit goods
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Public goods
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Economic goods
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Detailed explanation-1: -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.
Detailed explanation-2: -Examples of merit goods include education, health care, welfare services, housing, fire protection, refuse collection and public parks.
Detailed explanation-3: -Public goods satisfy social wants or merit wants while private goods satisfy individual wants. 2. Public goods are non rival in consumption while private goods are rivalrous. 3.
Detailed explanation-4: -Both merit goods and demerit goods are examples of a private good because: There is rivalry in consumption, i.e. once a product has been consumed by one person, it cannot be consumed by another person.