What this practice covers
These questions are drawn from past CIE 9708 papers and filtered to classification of goods and services. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising Paper 1 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on classification of goods and services, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Free of charge = free good. Wrong: opportunity cost is the test.
- Government-provided = public good. Wrong: use rivalry and excludability.
- Merit good = public good. Wrong: the definitions use different criteria.
- Demerit good = illegal good. Wrong: many demerit goods are legal.
- Public goods have no opportunity cost. Wrong: they use scarce resources.
- One category only. Wrong: classifications can overlap.
- Merit goods are under-consumed only because they are expensive. The current
- Demerit goods are over-consumed only because of external costs. Topic 1.6
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Classification of Goods and Services revision notes.