A Demerit Good Is a Good or Service That

question 24

Multiple Choice

A demerit good is a good or service that

• A)the political process has deemed socially desirable.
• B)can be consumed by one individual without affecting the consumption of another individual.
• C)is not subject to the principle of mutual exclusivity.
• D)the political process has deemed socially undesirable.

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Definitions:

Interest Income

The income earned by an individual or entity from the investment in interest-bearing financial assets like savings accounts, bonds, or loans.

Cost Of Inflation Reduction

refers to the expenses associated with implementing policies and measures to lower inflation within an economy.

Unemployment

The condition of being out of work and actively seeking employment but unable to find a job.

Permanent Increase

A lasting upward adjustment in size, amount, or value.