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Table of Contents

  1. Topic pack - Microeconomics - introduction
  2. 1.1 Competitive Markets: Demand and Supply
  3. 1.1 Competitive Markets: Demand and Supply - notes
  4. 1.1 Competitive markets - questions
  5. 1.1 Competitive markets - simulations and activities
  6. 1.2 Elasticities
  7. 1.2 Elasticities - notes
  8. Section 1.2 Elasticities - questions
  9. Section 1.2 Elasticities - simulations and activities
  10. 1.3 Government intervention
  11. 1.3 Government Intervention - notes
  12. 1.3 Government intervention - questions
  13. 1.3 Government intervention - simulations and activities
  14. 1.4 Market failure
  15. 1.4 Market failure - notes
  16. Section 1.4 Market failure - questions
    1. Market failure - short answer
    2. Externalities - short answer
    3. Externalities & allocative efficiency - short answer
    4. Externalities - self-test questions
    5. Public goods - short answer
    6. Merit goods - short answer
    7. Demerit goods - short answer
    8. Types of goods - self-test questions
    9. Government responses - short answer
    10. Common access resources - activities
    11. Overexploitation - questions
    12. Sustainability - report
    13. Plastic bags - carrying the weight of the environment?
    14. Running cars on biofuels can be unethical
    15. Cement - the hidden polluter?
    16. African roses - a sign of change
    17. Congestion charging
    18. Putting a price on carbon
    19. Power bills to soar in 'green reforms'
    20. Beyond Kyoto
    21. Economic growth cannot continue
    22. The rush to find Jade
    23. Chopstick tax
    24. Taxing light bulbs - that's a bright idea
    25. Trading pig excrement
    26. Congestion pricing
    27. Packaging tax
    28. Airport expansion plans
  17. Section 1.4 Market failure - simulations and activities
  18. 1.5 Theory of the firm
  19. 1.5 Theory of the firm - notes (HL only)
  20. Section 1.5 Theory of the firm - questions
  21. Section 1.5 Theory of the firm - simulations and activities
  22. Print View

Types of goods - self-test questions

question

1
Types of goods

How would you classify the type of good shown in the image below?

S:\triplea_resources\DP_topic_packs\economics\student_topic_packs\media_microeconomics\images\Centurion_Tank.jpg

a)
b)
c)
d)
Please select an answer Yes, that's correct. Well done. Defence is considered to be non-rival and non-excludable and is therefore a public good.No, that's not right. Merit goods are goods which are deemed to be socially desirable, and which are likely to be under-produced and under-consumed through the market mechanism. Defence would not be provided at all through the market mechanism and is therefore a public good. No, that's not right. A demerit good is a good which is deemed to be socially undesirable, and which are likely to be over-produced and over-consumed through the market mechanism.No, that's not right. Free goods are goods which we can consume in infinite quantities without any cost. They take no resources to produce and can be obtained without having to give up the opportunity to produce another good.
Check your answer

2
Types of goods

How would you classify the type of good shown in the image below?

a)
b)
c)
d)
Please select an answerNo, that's not right. Smoking is not non-rival and non-excludable in consumption and is therefore not a public good.No, that's not right. Merit goods are goods which are deemed to be socially desirable, and which are likely to be under-produced and under-consumed through the market mechanism. Smoking would be over-provided through the market mechanism and is therefore a demerit good.Yes, that's correct. Well done. A demerit good is a good which is deemed to be socially undesirable, and which are likely to be over-produced and over-consumed through the market mechanism. Smoking is a good of this nature.No, that's not right. Free goods are goods which we can consume in infinite quantities without any cost. They take no resources to produce and can be obtained without having to give up the opportunity to produce another good.
Check your answer

3
Types of goods

How would you classify the type of good represented by the image below?

S:\triplea_resources\DP_topic_packs\economics\student_topic_packs\media_microeconomics\images\stethoscope.jpg

a)
b)
c)
d)
Please select an answerNo, that's not right. Health care is not entirely non-rival and non-excludable in consumption and is therefore not a public good. It has social benefits when provided and is therefore usually categorised as a merit good. Yes, that's correct. Well done. Merit goods are goods which are deemed to be socially desirable, and which are likely to be under-produced and under-consumed through the market mechanism. This is the case with healthcare and it is therefore usually categorised as a merit good. No, that's not right. A demerit good is a good which is deemed to be socially undesirable, and which are likely to be over-produced and over-consumed through the market mechanism. Healthcare is the opposite of this and is therefore a merit good.No, that's not right. Free goods are goods which we can consume in infinite quantities without any cost. They take no resources to produce and can be obtained without having to give up the opportunity to produce another good. Healthcare takes significant resources to provide.
Check your answer

4
Types of goods

How would you classify the type of good shown in the image below?

a)
b)
c)
d)
Please select an answer Yes, that's correct. Well done. A lighthouse is considered to be non-rival and non-excludable and is therefore a public good.No, that's not right. Merit goods are goods which are deemed to be socially desirable, and which are likely to be under-produced and under-consumed through the market mechanism. Lighthouses would not be provided at all through the market mechanism (too difficult to 'exclude' people who haven't paid) and are therefore a public good. No, that's not right. A demerit good is a good which is deemed to be socially undesirable, and which are likely to be over-produced and over-consumed through the market mechanism.No, that's not right. Free goods are goods which we can consume in infinite quantities without any cost. They take no resources to produce and can be obtained without having to give up the opportunity to produce another good.
Check your answer