What aspect of demerit goods means they are overproduced?

A.
clear product information
B.
high external costs
C.
high product taxes
D.
low customer demand
Economics
IGCSE&ALevel
CAIE
Exam No:0455_s20_qp_11 Year:2020 Question No:5

Answer:

B

Knowledge points:

2.10.3 consequences of market failure:The implications of misallocation of resources in respect of the over consumption of demerit goods and goods with external costs, and the under consumption of merit goods and goods with external benefits.

Solution:

Download APP for more features
1. Tons of answers.
2. Smarter Al tools enhance your learning journey.
IOS
Download
Android
Download
Google Play
Download