A merit good
An externality
The free-rider problem
A public good
Market forces will always correct the problem
The market price is below the socially preferred price that reflects the external costs
The market price is above the socially preferred price that reflects the external costs
The market quantity is too low from society's point of view
Decreasing the costs to those responsible for the externality
Decreasing taxes
Increasing taxes or regulation
Allowing the market system to correct the problem
0.05
0.5
0.2
2.0
How much the market price changes in response to a change in demand
The producers' sensitivity to a price change
The consumers' sensitivity to a price change
How much the demand changes in response to a change in income
The usefulness of a good or service
The objective measure of the desirability of a good or service
The want-satisfying power of a good or service
The utilitarian value of a good or service
The increase in utility divided by the total number of units consumed
The change in total utility divided by the change in number of units consumed
The total utility divided by the total number of units consumed
The number of units consumed divided by the total utility
All of their income has been saved
The total level of utility is as high as possible
They save more than they spend
Goods are bought "on sale."
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