Classification of Goods and Services

Explain the difference between a public good and a private good (economic good) and consider the extent to which a beach could be described as a public good.

Assess the extent to which a subsidy is likely to be the best method to increase the consumption of a merit good.

With the help of examples, explain the difference between public goods and free goods and consider whether a market economy can ever produce public goods.

Assess the extent to which a government can ensure that both merit and demerit goods are produced in desirable quantities.

Explain what is meant by a merit good and why governments provide merit goods such as healthcare free of charge and consider why such provision may not always be successful.

Assess whether a charge made for healthcare at the point of use is likely to be more beneficial to consumers and providers than if healthcare is available to all free of charge.

With the help of examples, explain the nature and characteristics of free goods and private goods (economic goods) and consider the significance of the distinction between these two types of good.

Assess whether education should be classified as a public good or a merit good.

With the help of an example of each, explain the difference between a merit good and a demerit good and consider whether a subsidy given to a merit good will always be effective in increasing its consumption.

Assess whether fixing a minimum price is likely to be the best policy to reduce the consumption of a demerit good.

With the help of examples, explain the difference between free goods and public goods and consider the view that public goods can never be provided in a market economy.

The provision of merit and demerit goods differs from the provision of other private goods.

Assess the view that the consequences of imperfect information are more serious in a market economy than in a mixed economy.

A government has decided to spend money building a new barrier to prevent flooding across a city. Explain why this flood defence barrier is likely to meet the characteristics of a public good.

Education and healthcare are considered to be merit goods.

Discuss why merit goods are provided by both the private sector and the public sector.

Explain, using examples, the difference between private goods and public goods and why public goods will not be supplied by private enterprise.

Consider the problem of the provision of merit goods in a market economy and assess whether direct provision of such goods is the most effective way to deal with this problem.

Using examples, explain why merit goods are said to be under-consumed and demerit goods are over-consumed.

Discuss whether merit goods should always be subsidised and demerit goods always taxed.

Explain why both merit goods and demerit goods are examples of private goods.

Discuss whether merit goods and demerit goods are best provided by a market economy.