A 'merit good' is a good that: MCQ with Answer and Explanation

Question

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A 'merit good' is a good that:

A. is consumed voluntarily

B. has negative externalities

C. is only for the rich

D. the government encourages or provides because it has positive externalities and is under-consumed

Answer: Option D

Solution (By JKSSB Mock Tests)

Merit goods are under-consumed if left to the market, so government encourages their provision.

This question belongs to: Economy GK Economy Set 1

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Question #1

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The 'National Policy on Skill Development and Entrepreneurship' was released in which year?

A. 2020

B. 2009

C. 2018

D. 2015

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Correct Answer: Option D

Explanation:
The National Policy on Skill Development and Entrepreneurship was released in 2015.

This question belongs to: Economy GK Economy Set 1

Question #2

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The 'Goods and Services Tax' is often described as a game-changing reform because it:

A. increased direct tax

B. removed all taxes

C. increased many taxes

D. unified the Indian market and simplified indirect taxes

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Correct Answer: Option D

Explanation:
GST unified the Indian market and simplified indirect taxation.

This question belongs to: Economy GK Economy Set 1

Question #3

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Buffer stock of food grains is maintained by the government mainly to:

A. increase exports

B. support private traders

C. meet shortages and stabilize prices

D. reduce agricultural production

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Correct Answer: Option C

Explanation:
Buffer stocks are maintained to meet emergencies and stabilize food grain prices.

This question belongs to: Economy GK Economy Set 1

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