Which of the following is NOT an example of a merit good or service?

• A. Museums
• B. Vaccinations
• C. Public education
• D. National defense

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the definition of a merit good or service. Merit goods are goods or services that are socially desirable and often under-consumed if left to the free market, so governments tend to provide or subsidize them. Examples include education, healthcare, and vaccinations.
2. Step 2: Review each option to determine if it fits the characteristics of a merit good. Museums, vaccinations, and public education are typically considered merit goods because they provide positive externalities and social benefits.
3. Step 3: Consider the nature of national defense. Unlike merit goods, national defense is a public good characterized by non-excludability and non-rivalry, meaning it is provided to all citizens regardless of individual consumption and cannot be withheld.
4. Step 4: Recognize that while national defense is important, it is classified as a public good rather than a merit good because it does not fit the criteria of goods that are under-consumed and subsidized to encourage consumption.
5. Step 5: Conclude that the correct answer is national defense, as it is NOT an example of a merit good or service but rather a public good.