Merit goods and services are:
A. Merit goods are those goods and services that the government feels that people will over-consume, and which ought to be taxed at the point of use so that over consumption does not happened by well of households.
B. Merit goods are those goods and services that the government feels that people will under-consume, and which ought to be subsidised or provided free at the point of use so that consumption does not depend primarily on the ability to pay for the good or service.
C. A good which harms the consumer, for example, people don’t realise or ignore the costs of doing something e.g. smoking, drugs.
D. Those goods and services which have negative externalities.
Answer:B
Merit goods and services are:
A. Merit goods are those goods and services that the government feels that people will over-consume, and which ought to be taxed at the point of use so that over consumption does not happened by well of households. B. Merit goods are those goods and services that the government feels that people will under-consume, and which ought to be subsidised or provided free at the point of use so that consumption does not depend primarily on the ability to pay for the good or service. C. A good which harms the consumer, for example, people don’t realise or ignore the costs of doing something e.g. smoking, drugs. D. Those goods and services which have negative externalities.
Explanation: Merit goods are those goods and services that the government feels that people will under-consume, and which ought to be subsidised or provided free at the point of use so that consumption does not depend primarily on the ability to pay for the good or service. Both the state and private sector provide merit goods & services. We have an independent education system and people can buy private health care insurance.