Which De-Merit Good Is Likely to Be Over Consumed When

question 10

Multiple Choice

Which de-merit good is likely to be over consumed when left to the market mechanism?

• A) Education.
• B) Health care.
• C) Museum attendance.
• D) Tobacco.

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Definitions:

Chi-squared Test

The Chi-squared test is a statistical method used to determine if there is a significant difference between the expected and observed frequencies in one or more categories.

Test Statistic

A quantity derived from sample data used to make a decision about a hypothesis test.

Z

'Z' often represents the Z-score in statistics, which is the number of standard deviations a data point is from the mean of the data set.

Square

A polygon with four equal sides and four right angles.