Which one is not true about merit goods?

CA Foundation · Business Economics · MTP · January 2026
Which one is not true about merit goods?
(A) A. Under-consumed
(B) B. Government promotes them
(C) C. Have negative externalities
(D) D. None of these

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. Have negative externalities

Topics: Public Finance

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