hnd 经济学导论 outcome3 答案

Outcome 3

1. What is meant by public goods and merit goods? Give an example of each. Merit Goods: The Government provides services that might not be provided by the private sector in sufficient quantities or of a sufficient quality, for example, health services and education. These are commonly referred to as Merit Goods.

For example: 1. Beijing International Studies University.

Public Goods: These are commodities, which would not be provided by the private sector because they would find that many people, even if they benefited from them, would refuse the finance through taxation. The level of spending allocated to public goods varies and will depend on many things such as needs and circumstances and political philosophies.

For example: 1. Street lamp.

2.Explain why the Government allowed the merger of Carlton and Granada while refusing Tesco, Sainsbury and ASDA the opportunity of taking over Safeway.

Because of TV isn’t maintaining products of the p eople’s living standard. And merger will be saving cost and rational use of resources. The main incomes are from enterprise income of Carlton and Granada. Customers aren’t main income of Carlton and Granada. Within this field, Government encourages merger to integration of resources. According to economic theory, we know that a scale monopoly is where at least a person or company supplies 25 percent or more of the goods or services of a particular type in UK. In this case, Tesco, Sainsbury and ASDA of the three companies in any one company merger of Safeway, after merger of company’s supplies will over 25 percent. The three companies will increase power after merger lead to monopoly. Because of monopoly will be threatened to benefits of customers.

Therefore, the Government refuses Tesco, Sainsbury and ASDA the opportunity of taking over Safeway. On the other hand, Morrisons is a smaller than Tesco, Sainsbury and ASDA. Even if Morrisons merger Safeway, it supplies can’t more than 25 percent. Therefore, Government encourages Morrisons merger Safeway will be grow market share and improve competitive strength of Morrisons. And Morrisons have power participate competitive with other three companies. And customers will get benefits from monopoly between companies. On the other hand, products of supermarket are closely related with the household, they are direct impact on consumption level, decreasing competitive lead to increasing price to against benefits of customers.

Therefore, Government allowed the merger of Carlton and Granada while

refusing Tesco, Sainsbury and ASDA the opportunity of taking over Safeway.