Merit goods
A) are provided for those who behave themselves and play nice.
B) should be provided even if there is no demand for them.
C) increase in costs along with demand.
D) none of these answer options are correct.

Question

Quizplus · Accepted Answer

Merit goods are goods or services that are considered to be beneficial for society, but may not be provided in sufficient quantities by the market. They might not have a strong demand because people may not fully understand their benefits or they may not be able to afford them. However, since they have positive externalities, such as improving health or education outcomes, they should be provided by the government even if there is no demand for them.

Merit Goods