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O-LevelEconomicsThe allocation of resources2281/12 · May/June 2025 · Q91 Mark

What is a characteristic of a demerit good?

Ait is more beneficial to the consumer than they realise
Bit is overconsumed in the free market
Cit is underproduced in the free market
Dit provides external benefits

✓ Correct answer

B: it is overconsumed in the free market

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About this question

Topic
The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, May/June 2025 Paper 1 Variant 2, question 9.

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