Match each good with the type of good it represents
Asked by maham237 @ in History viewed by 321 People
A. Retirement programs 1 Public good
B. Infrastructure projects 2 Merit good
C. Stock investments 3 Individual good
Answered by maham237 @
The correct answer is the following.
The correct matches are:
A. Retirement program: Merit good.
B. Infrastructure program: public good.
C. Stock investments: Individual good.
A retirement program is a merit good. The merit of having worked and pay taxes for an entire professional life. That is why pension is so valued for retired people after many years of service. Stock investments are individual goods. People invest, risk their money, are perseverant and patience, and at the end, they receive the interests for their investments. And finally, an infrastructure program benefits the citizens. If the government builds a new bridge or highway, it benefits millions of people and represents an improvement in the infrastructure of the city.
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