In 1997, the union government placed higher education under the category of
2023
In 1997, the union government placed higher education under the category of
Answer: A. Non-merit good — ConceptPublic-finance subsidy policy distinguishes merit goods from non-merit goods. Merit goods receive stronger public support because of broad social…
- A.
Non-merit good
- B.
Priority Good
- C.
State good
- D.
Secondary good
Show answer & explanation
Correct answer: A
Concept
Public-finance subsidy policy distinguishes merit goods from non-merit goods. Merit goods receive stronger public support because of broad social benefits; a non-merit classification places more weight on private returns and cost recovery.
Application
In its 1997 discussion paper Government Subsidies in India, the Union Ministry of Finance classified secondary and higher education as non-merit goods. Thus, higher education was placed in the non-merit good category.
Contrast
Priority good is a general policy-priority label, not the classification used for higher education in the cited subsidy paper.
State good describes government provision or ownership, not the merit-based subsidy category used in that paper.
Secondary good suggests an ordinal tier, not the public-finance classification recorded in the 1997 paper.
Cross-check
The NTA final answer key for the 22 June 2023 first-shift General Paper and independent higher-education policy literature both identify “Non-merit good”.
Result: Non-merit good.