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. Section C Answer one question.
Exam No:9708_w23_qp_22 Year:2023 Question No:3(b)
Answer:


Knowledge points:
1.6.1 nature and definition of free goods and private goods (economic goods)
1.6.2 nature and definition of public goods
1.6.3 nature and definition of merit goods: under-consumption as a result of imperfect information in the market
1.6.4 nature and definition of demerit goods: over-consumption as a result of imperfect information in the market
Solution:
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