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- 1. Multiple ChoiceA public good isAnything non-rivalrous and non-excludableAnything all citizens valueAnything produced by the governmentAnything with a positive externality
- 2. Multiple ChoiceEducation isA merit goodA public goodA demerit goodNone of these
- 3. Multiple ChoiceWhich of the following is least likely to be classed as a merit good?Fossil fuelsTraining & DevelopmentUniversity degreesHealth care
- 4. Multiple ChoiceFor a merit good...MPB is less than MSBMSB is less than MPBMPC=MSCMPB=MSB
- 5. Multiple ChoiceWhich type of goods would be over produced if left to market forces?Demerit goodsMerit goodsPublic goodsNone of these
- 6. Multiple ChoiceWhich of the following is a public good?RAFKing Edward's SchoolNHSA council run nursing home
- 7. Multiple ChoiceThe 'Tragedy of the Commons' is illustrated by...Over-fishingProvision of lighthousesPublic librariesShortage of rental accommodation
- 8. Multiple ChoiceThe free-rider problem is an issue relating to...Public goodsMerit goodsDemerit goodsNone of these
- 9. Multiple ChoiceA government can correct a negative externality of consumption by...A taxA subsidyA price ceilingNone of these
- 10. Multiple ChoiceWhen a merit good is consumedMSB is greater than MPBMPB is greater than MSBMPB is greater than MPCMSB is greater than MSC
- 11. Multiple ChoiceEach of the following is an example of a demerit good except:InsuranceHeroinAlcoholTobacco
- 12. Multiple ChoiceDelayed gratification in relation to a merit good means the benefits of consumption........Are only realised in the longer termAre larger than the costsAre affected by diminishing marginal utilityAre high
- 13. Multiple ChoiceEach of the following is a characteristic of a merit good except:All merit goods are free at the point of consumptionBenefits of consumption are available in the longer termExternal benefits are created from consumptionUnder-provided in a free market economy
- 14. Multiple ChoiceA government might subsidies a merit good e.g. education because the subsidy ....Reduces production cost and therefore encourages consumptionMeans the firm receives money to spend on what it wantsBenefits may be lower than its costsMight correct government failure
- 15. Multiple ChoiceGovernment policy solutions to reduce the consumption of demerit goods include:Increasing excise dutyDecreasing income taxDecreasing corporation taxIncreasing subsidies
- 16. Multiple ChoiceA merit goodPECPEPNECNEP
- 17. Multiple ChoiceDemerit goodNECPEPPECNEP
- Answer choicesTagsAnswer choicesTags