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Encyclopedia > Demerit good

In economics, a demerit good is a good or service that is seen as intrinsically unhealthy, degrading, or socially damaging towards other persons and/or society at large once consumed. Examples of demerit goods include tobacco, alcoholic beverages, recreational drugs, gambling, junk food and prostitution. Due to their perceivedly negative effects, governments often levy taxes on these goods, and in some cases outlaw consumption altogether, or the advertising thereof - the assumption being that governments can better decide on consumption of certain goods than the citizens they preside over can. Buyers bargain for good prices while sellers put forth their best front in Chichicastenango Market, Guatemala. ... A good in economics is any object or service that, upon consumption, increases utility, and therefore can be sold at a price in a market. ... In economics and marketing, a service is the non-material equivalent of a good. ... Species Nicotiana acuminata Nicotiana alata Nicotiana attenuata Nicotiana benthamiana Nicotiana clevelandii Nicotiana excelsior Nicotiana forgetiana Nicotiana glauca Nicotiana glutinosa Nicotiana langsdorffii Nicotiana longiflora Nicotiana obtusifolia Nicotiana paniculata Nicotiana plumbagifolia Nicotiana quadrivalvis Nicotiana repanda Nicotiana rustica Nicotianasuaveolens Nicotiana sylvestris Nicotiana tabacum Nicotiana tomentosa Ref: ITIS 30562 as of August 26, 2005... Bottles of cachaça, a Brazilian alcoholic beverage. ... Recreational drug use is the use of psychoactive drugs for recreational rather than medical or spiritual purposes, although the distinction is not always clear. ... Slot machines in Las Vegas, Nevada. ... Crunchy Cheetos with a sandwich Junk food is a common term used for any food item that is perceived to be unhealthy and has low or poor nutritional value. ... Prostitution is the sale of sexual services. ... -1...


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  • Definition of a demerit good
Types of goods

collective good (social good) - private good - common good - common-pool resource - club good - public good A good in economics is any physical object (natural or man-made) or service that, upon consumption, increases utility, and therefore can be sold at a price in a market. ... In economics, a public good is a good that is hard or even impossible to produce for private profit, because the market fails to account for its large beneficial externalities. ... In economics Private good is an opposite of the public good. ... The common good is a term that can refer to several different concepts. ... The terms common-pool resource (CPR), alternatively termed a common property resource, is a particular type of good, and a natural or human-made resource system, whose size or characteristics of which makes it costly, but not impossible, to exclude potential beneficiaries from obtaining benefits from its use. ... Club goods are a type of goods in economics, sometimes classified as a subtype of public goods, that are non-competetive and excludable. ... In economics, a public good is a good that is hard or even impossible to produce for private profit, because the market fails to account for its large beneficial externalities. ...

rivalrous good and non-excludable good
complement good vs. substitute good
free good vs. scarce good, positional good

durable good - non-durable good - intermediate good (producer good) - final good - consumer good - capital good.
inferior good - normal good - Giffen good - luxury good - Veblen good - superior good
search good - (post-)experience good - merit good - credence good - demerit good In economics, a good is considered rivalrous if its consumption by one person prevents it from being available to others. ... Non-excludable goods are defined in economics as goods whereby it is impossible to stop a person consuming that good when it has become publicly available at a relatively low cost. ... A complement good (or complementary good) is a good that should be consumed with another good. ... In economics, one kind of good (or service) is said to be a substitute good for another kind insofar as the two kinds of goods can be consumed or used in place of one another in at least some of their possible uses. ... The free good is a term used in economics to describe a good that is not scarce. ... Scarcity is a central concept in economics. ... A positional good is an intrinsically scarce good whose value is determined by its social context, as opposed to a material good which has innate value. ... A durable good, or a hard good is an economics term for a good which does not quickly wear out, or more specifically; it yields services or utility over time rather than being completely used up when used once. ... A durable good, or a hard good is an economics term for a good which does not quickly wear out, or more specifically; it yields services or utility over time rather than being completely used up when used once. ... Intermediate goods are goods produced by one firm for use in further processing by another firm. ... In economics Final goods are goods that are ultimately consumed rather than used in the production of another good. ... Definitions of consumer goods by Ben Murray New goods acquired by households for their own consumption. ... Capital goods, in contrast to consumer goods, are goods used in the production of (physical) capital. ... In consumer theory, an inferior good is a good that decreases in demand when the consumers income rises, unlike normal goods, for which the opposite is observed. ... In economics, normal goods are any goods for which demand increases when income increases. ... A Giffen good is a product for which a rise in price of this product makes people buy even more of the product. ... In economics a luxury good is a good for which demand increases more than proportionally as income rises, contrast with inferior good and normal good. ... A commodity is a Veblen good if peoples preference for buying it increases as a direct function of its price. ... Superior goods make up a larger proportion of consumption as income rises, and as such are a type of normal goods in consumer theory. ... In economics, a search good is a product or service with easily observable features and characteristics. ... In economics, an experience good is a product or service where product characteristics such as quality or price are difficult to observe. ... A merit good is defined in economics as a good that is under consumed if provided by the market mechanism because individuals typically consider how the good benefits them as individuals rather than the benefits that consumption generates for others in society. ... A credence good is a term used in economics for a good whose utility impact is difficult or impossible to ascertain, unlike experience goods the utility gain or loss is difficult to measure after consumption as well. ...


  Results from FactBites:
 
Glossary (4347 words)
As long as the relative opportunity costs of producing goods (what must be given up in one good in order to get another good) differ among countries, then there are potential gains from trade, even if one country has an absolute advantage in everything.
Goods or activities the government deems bad for people even though they choose to use the goods or engage in the activities.
As you get more and more of a good, if some of that good is taken away, then the marginal addition of another good you need to keep you on your indifference curve gets less and less.
  More results at FactBites »


 
 

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