Which of the following is an example of a merit good?
A. Gambling
B. Cigarettes
C. Alcohol
D. Education
Answer: Option D
Solution (By JKSSB Mock Tests)
Merit goods are those that the government feels people will under-consume and which ought to be subsidised or provided free, such as education and healthcare.
Explanation:
The real exchange rate is defined as the nominal exchange rate multiplied by the ratio of foreign to domestic price levels (or the relative price of foreign to domestic goods).
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