A merit good is a type of good or service that society believes everyone is entitled to a minimum amount of, regardless of their ability to pay. Examples of merit goods include healthcare, education, and basic utilities. It is considered a merit good because it benefits society as a whole to ensure that every individual has access to these essential goods and services. Therefore, option C is the best choice.

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A Merit Good Is

Question 41

Multiple Choice

A merit good is

A) Income payments for which no goods or services are exchanged.
B) A good society holds to a higher standard in tax regulations.
C) A good or service that society believes everyone is entitled to a minimal quantity of.
D) A product that serves as an incentive to produce more output.

Correct Answer: