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Can someone clearly explain to me what merit and demerit goods are?
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11-18-2012, 12:59 PM
Post: #1
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Can someone clearly explain to me what merit and demerit goods are?
I'm studying economics and we briefly mentioned merit and demerit goods but I don't completely understand what they are. I know that cigarettes and alcohol are demerit goods, and that education is a merit good but I don't totally understand the definition?
Is a demerit good just a good which has negative externalities? for example smoking has smoke pollution, alcohol is linked to health problems, anti social behaviour etc ? and is a merit good something which gives a benefit back to society? like education creates doctors, mechanics etc? Thanks in advance ![]() Ads |
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Can someone clearly explain to me what merit and demerit goods are? - cafff - 11-18-2012 12:59 PM
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