Economics A Level: Why is it that not all Goods with Negative [Or Positive] Externalities an automatic Demerit [or Merit] Good?
-Use Driving as an Example

Question

Why is it that not all Goods with Negative [Or Positive] Externalities an automatic Demerit [or Merit] Good?
-Use Driving as an Example

go kys · Accepted Answer

-Driving creates Pollution - Harmful to Society. But Driving isn't as Harmful to the Individual as say Drugs is, and it allows the Individual to be Mobile, and then helps Society that Way]

Economics A Level

Why is it that not all Goods with Negative [Or Positive] Externalities an automatic Demerit [or Merit] Good? -Use Driving as an Example

-Driving creates Pollution - Harmful to Society. But Driving isn't as Harmful to the Individual as say Drugs is, and it allows the Individual to be Mobile, and then helps Society that Way]

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