Which is a merit good provided through public finance?

• A. Cars
• B. Education
• C. Fast food
• D. Entertainment tickets

Answer: (B)

Merit goods are those with positive spillover benefits for society, so people may under-consume them in a free market. Education is a classic example because a more educated population boosts productivity, innovation, and various social outcomes (like lower crime and better health). Because of these external benefits, governments fund or subsidize education through public finance to raise consumption to a socially desirable level. The other options are generally private goods—cars, fast food, and entertainment tickets—primarily bought with private funds for individual use, not provided by the state due to their personal nature and lack of required social externalities. So education is the merit good provided through public finance.