What are merit goods
goods or services that are considered beneficial to society but are under-consumed in a free market economy.
What are public goods
a product or service that every member of a society can consume freely
What is a demerit good
a product or service that is harmful to the consumer or society as a whole
What is meant by productive efficiency
the idea of producing the maximum amount of goods or services with the least amount of resources
What is meant by allocative efficiency
when the production of goods and services matches consumer demand, and the marginal benefit of a product or service equals its marginal cost.
Last changed10 days ago