A-Level - Classification of goods and services

Which of these is a distinctive characteristic of a pure public good?

• Consumption by one person means that there is less available for another person.

• Nobody can be excluded from consuming it.

• It is produced by the private firms.

• It is free of charge for all use or consumption.

Which of these is a distinctive characteristic of a merit good?

• It is overprovided in the market.

• It is underprovided in the market.

• It is funded by the government.

• Anyone can buy it.

Which of these is a distinctive characteristic of a demerit good?

• It is overprovided by the market.

• It is underprovided by the market.

• It is pprovided by government.

• It is only given to those who deserve it.

Suppose a public museum charges an entry fee. Which of the following applies to visits to the museum when there are very few visitors?

• non-excludable and non-rival

• non-excludable and rivalry

• excludable and non-rival

• excludable and rivalry

The vaccination of a child against polio is a merit good because:

• the child’s family cannot afford the vaccination.

• it protects the child from polio.

• it provides employment in the pharmaceutical industry.

• it is underprovided by the market.