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CAIE A-Level Economics AS 1.6.3 Merit Goods Questions

Practise explaining why merit goods are under-consumed under imperfect information, their positive externalities and why both public and private sectors may provide them.

Syllabus
2026–2028
Course
Economics 9708
Level
AS

Exam points

  • Explain merit goods as private goods that are under-consumed because of imperfect information and generate positive externalities, and evaluate public and private provision.

CAIE A-Level Economics AS 1.6.3 Merit Goods Questions question 1

[Maximum number: 1]

Consumers do not use enough of a product to maximise their private benefit because they have imperfect information about the product.

How would an economist classify this product?

A

demerit good

B

free good

C

merit good

D

public good

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