DEMERIT GOOD Meaning and
Definition
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A demerit good refers to a specific type of commodity or service that has negative effects on individuals or society in general, even though they are widely consumed or desired. The use or consumption of demerit goods is usually associated with negative consequences such as health hazards, social harm, or environmental degradation.
Unlike typical goods, which are considered beneficial or neutral in their impact, demerit goods are characterized by their detrimental effects. Examples of demerit goods often include cigarettes, alcohol, illegal drugs, gambling, unhealthy fast food, and sugary beverages. While these goods are commonly sought after and consumed, their negative externalities on public health, individual well-being, or societal welfare are widely acknowledged.
The term "demerit" implies a form of penalty or condemnation, illustrating the social disapproval or undesirability associated with such goods. Governments often intervene in the consumption of demerit goods through various regulatory measures, such as imposing taxes, bans, restrictions, or awareness campaigns to reduce their use and minimize the negative consequences.
The concept of demerit goods is based on the belief that individuals may not always make rational decisions in pursuing their own self-interest, particularly when they lack full information or understanding about the long-term consequences or risks associated with certain goods. Therefore, governments intervene to discourage or regulate the consumption of demerit goods in order to protect public welfare and promote the common good.
Common Misspellings for DEMERIT GOOD
- semerit good
- xemerit good
- cemerit good
- femerit good
- remerit good
- eemerit good
- dwmerit good
- dsmerit good
- ddmerit good
- drmerit good
- d4merit good
- d3merit good
- denerit good
- dekerit good
- dejerit good
- demwrit good
- demsrit good
- demdrit good
- demrrit good
- dem4rit good
Etymology of DEMERIT GOOD
The term "demerit good" is a combination of the words "demerit" and "good".
- "Demerit" originates from the Latin word "demeritus", which means "having deserved". In English, the word "demerit" is commonly used to describe a mark or point against someone, indicating their wrongdoing or failure.
- "Good", in this context, refers to a product or service that is considered beneficial or desirable.
When these two words are combined, "demerit good" refers to a product or service that has negative effects on the consumer or society, being deemed as harmful or disadvantageous. This term is often used in economics to describe goods that are over-consumed or have negative externalities, such as cigarettes, alcohol, or sugary drinks.
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