Question

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

Answer 1

Answer:

A product that serves as an incentive to produce more output.

Explanation:

Merit goods are those goods that contains the positive externality and it could be generated or produced more and more in the market.

So it is a product that could be treated as the incentive for generating the maximum output and the incentive should be provided by the government

Therefore the last option is correct