What Is a Merit Good

Multiple Choice

What is a merit good?

A) A good that is commonly available because it is a vital good for survival, but which consumers will therefore overexploit
B) A good whose MC = P
C) A good that the government feels people will underconsume and which, therefore, ought to be subsidised or provided free
D) A good whose MSC > MC
E) A good that is non- excludable and non- rival