CA Foundation P4 · Chapter 7 · Question 6 of 15
Which of the following is a merit good?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Primary education
Explanation
Merit goods are goods whose consumption is considered socially desirable and which people tend to under-consume if left to themselves, such as education and health care. Cigarettes and liquor are demerit goods, and national defence is a public good.
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