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Economics (AS & A Level) · May / June 2026 · Paper 13 · Question 4

9708Classification of goods and services

What justifies government intervention in the provision of a merit good such as education?

  1. APeople who pay for education value it more than those who cannot pay.
  2. BPrivate schools have more merit than state schools.
  3. CCosts of providing education outweigh benefits of education.
  4. DSome consumers do not fully recognise the value of education.

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Correct answer: D. Some consumers do not fully recognise the value of education.

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