• Market Failure - How Do Markets Fail and What Can Be Done About It?
    -rivalrous and non-excludable, while private goods, such as a merit good, are rivalrous and excludable. When a good has large positive externalities, the government should support its production. When a good has large negative externalities (demerit good), the government should limit or stop its production...
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  • Free Market vs Planned Economy
    them. He also added that demerits goods are those goods which the state forbids people to consume mainly because individual are said to be unaware of the true harm they would suffer by consuming them. The best known examples of merit goods are health, education systems, insurance, inoculation and...
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  • Mr Kenny
    is really a good intervention for citizen thus the obvious solution is that these goods are provided collectively by the government, and then financed through taxation of individual households and businesses. Thirdly, merit and demerit goods influence the market failure in some ways. Actually...
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  • Wireless Technology
    no effect on living beings. V. MERITS, DEMERITS AND ECONOMIC IMPACT As good as this technology sounds it still has advantages and disadvantages on its self and the economy. 5.1 MERITS The wireless electricity system would eliminate the need of inefficient, costly and capital intensive system of...
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  • economics
    Micro Economics project Kofi Boateng L6R INDIRECT TAXES An indirect tax is one in which the burden can be shifted to others. The tax payer is not the tax bearer. The impact and incidence of indirect taxes are on different persons. MERITS Convenient...
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  • Market Failure
    at Q2 where Social Cost = Social Benefit The red triangle is the area of dead weight welfare loss. It indicates the area of overconsumption (where MSC is greater than MPC) Merit and Demerit Goods Definition of Merit Good: A merit good has two characteristic: • People do not realise the true...
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  • Mikes paper
    Topic: Carbon (Emission) Taxes versus Tradeable Permits (Caps and trade) Question 2 Discuss the merits and demerits of each of these policies Carbon Taxes Merits Encourages alternatives. A higher price of carbon emissions will encourages firms and consumers to develop more efficient engines...
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  • Government Interactions with the Economy
    landmark law concerning government responsibility for economic performance. Full employment, price stability, and economic growth were established for stabilizing government policy. 7) Merit and Demerit Goods- political, or normative, activities of the government • Merit good- a good that has...
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  • Globalisation
    technology. Globalization has the effect on a number of things, some of which include culture, environment, economic development, political systems and the general human physical well-being among the societies in the world. Globalization can also be thought as a process which leads to significant...
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  • Business Law
    voluntary transaction.  There are certain attributes which differentiate the free market system and other system of economy. First and most importantly, government intervention is not present in the economy whereby all economic activities are carried out by the private sector. Besides, consumer...
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  • Advantages&Disadvantages of Rural&Urban Life
    Rural-Urban Differentials in the Attitude of Global Systems of GSM Ndagi, Oduwole & Sanusi Rural-Urban Differentials in the Attitude of Global Systems of Mobile Communication (GSM) Consumers to Merits and Demerits of GSM Technology in Ogun State, Nigeria I. Ndagi O. O. Oduwole R. A. Sanusi...
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  • Essay Eco
    enterprise and choice, consumers’ sovereighty, competition, minimum government intervention, price system. Next , the merits or advantages of capitalism system are production according to the needs of consumers, economic freedom, efficient utilization of resources, greater variety of consumer goods...
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  • Project Management
    Demerits ← Risk of no returns ← Chances of over capitalization ← Loose the opportunity of trading on equity ← Higher dividend more market value and more speculation Preference Shares Merits ← Gives safety of investment ← Fixed rate of return...
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  • Microeconomics
    , e.g. certain drugs like heroin, morphine and LSD. The government legislates against demerit goods by taxing their manufacture, sale and use. (Data source Merit and Demerit goods: tutor2u.com, 2012)7 Correcting Externalities Externalities represent a major imperfection of the price system...
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  • market failure
    , e.g. education As you pointed out out, merit goods are under-consumed when provided by the market. That means the market system isn't providing the optimum level of consumption but less than the optimum. Whenever the market is not providing the optimum result, that is a failure. Whenever the...
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  • Marketing
    interview: In this the researcher establishes contact through telephone.The investigator will have to be selective and careful while designing for it cannot be lengthy as in other cases.It must be brief, simple, to the point and non-confidential. MERITS: 1) It is economical: 2)Unbiased data: DEMERITS 1...
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  • Sub: Foundation Course
    500,000 people are on planes at any time. The Merits and Demerits of air transport:- Air transport is of recent origin in the development of transport system of a country. It is the gift of 20th century to the world. The second world ware has stimulated the growth of air transport and it has made...
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  • Acca F9
    investment and their opportunities 17) Terms: Bin System, Periodic Review System RISK MANAGEMENT 1) Foreign Exchange Risk and its types (Transaction risk, Economic Risk and Translation Risk) 2) Why Exchange Rate fluctuates 3) Hedging Techniques of FOREX (Brief Description, Merits and Demerits...
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  • economics
    , the consumption demand may decline, which in turn may reduce inflation. Disadvantages / Demerits of Direct Taxes Though direct taxes possess above-mentioned merits, the economist has criticized them on the following grounds: - 1. Tax Evasion In India, there is good amount of tax evasion. The...
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  • International finace
    The Gold Standard Era, 1870-1914(One Version of Fixed Rates) Definition: The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold. It follows that anything whose value is linked to that of gold must be as stable in value as gold. Types...
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