Match each good with the type of good it represents.

A. Retirement programs 1 Public good

B. Infrastructure projects 2 Merit good

C. Stock investments 3 Individual good

A. Stock investments Individual good

B. Retirement programs Merit good

C. Infrastructure projects Public good

Explanation:

The public good which people consume without affecting its availability or depriving others is called a public good. Law Enforcement, national defence and sewer systems are examples of public good, infrastructure program.

Merit goods are those services and goods which the government feels hat people will under consume and hence must be given for free so that the ability to pay for it won't be a hindrance in its consumption. Education is a merit good. Retirement program is as merit good. cannot

While the private goods are the products which must be bought to be consumed and its consumption by one person prevents other person from consuming it, food and clothes are examples of private goods. Stock investment is an individual good because there is intense competition in it for getting profits.

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.