CIMA BA1 · Chapter 8 · Question 3 of 9
Which of the following is generally treated as a merit good?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Education
Explanation
Merit goods are goods that society judges people should consume more of than they would choose in a free market, often because consumers underestimate the benefits and because of positive externalities. Education and healthcare are common examples. Tobacco is a demerit good and street lighting is a public good.
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