A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · Feb/Mar 2017 · Q41 Mark
Despite much opposition, the local government in a popular tourist resort built a leisure centre and swimming pool which is open to everyone. Many tourists visit the centre. Local residents are charged a lower entry fee than the fee charged to the tourists. How would economists classify this service?
AIt is a demerit good because some people objected to the development.
BIt is a merit good because the entry fee is reduced for local residents.
CIt is a private good because there is an entry fee for all users.
DIt is a public good because it is open to everyone and provided by the local government.
✓ Correct answer
C: It is a private good because there is an entry fee for all users.
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