Economics · May / June 2024 · Paper 11 · Question 9
2281Market failure
What is a correct definition of a demerit good?
- Aa good which generates external benefits
- Ba good with higher private costs than social costs
- Ca good which is more harmful to consumers than they realise
- Da good which provides no costs to third parties
As printed in the paper
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Correct answer: C. a good which is more harmful to consumers than they realise
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