Economics 9708 · AS & A Level · 1.6

1.6 — practice question

Even though there was strong opposition, the local authority in a well-known tourist destination constructed a leisure centre and swimming pool that anyone may use. A large number of tourists go to the centre. Local residents pay a smaller entry charge than the one imposed on tourists. In economists’ terms, how is this service classified?

  • 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.

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