Classification of Goods and Services Quiz by Shubhrata Shrestha | May 21, 2025 | 0 comments Classification of Goods and Services Quiz 1. What is the primary cause of under-consumption of merit goods? A. Imperfect information B. High production costs C. Government control D. Inflation None 2. Which of the following is an example of a public good? A. Hospital bed B. Streetlight C. Grocery item D. Private tutor None 3. Which characteristic applies to private goods? A. Non-rivalrous B. Free rider benefits C. Excludable D. Non-excludable None 4. A good that causes negative spillover effects on others is classified as: A. Merit good B. Public good C. Demerit good D. Free good None 5. What is the key feature of a free good? A. Produced by government B. Sold at zero price C. Unlimited supply and no opportunity cost D. Excludable and rivalrous None 6. Why do governments often provide public goods? A. To increase profits B. Because private firms lack interest due to the free rider problem C. To reduce inflation D. Because of demand elasticity None 7. Which of the following best describes a quasi-public good? A. Has no price B. Always under government control C. Partially excludable and rivalrous D. A type of private good None 8. What is a common solution to the over-consumption of demerit goods? A. Subsidies B. Import restrictions C. Taxation and regulation D. Free distribution None 9. Merit goods generate: A. Only private benefits B. Negative externalities C. Positive externalities D. No externalities None 10. Which of these goods is both rivalrous and excludable? A. Air B. National defense C. Public road D. A can of soda None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
