IB Economics Higher Level (HL) Practice Exam 2026 - Free IB Economics HL Practice Questions and Study Guide

The characteristic that is NOT associated with merit goods is that they are rivalrous and excludable. Merit goods are typically seen as essential for societal well-being, and their consumption has positive externalities. They are usually provided by the government or subsidized because the market tends to under-provide them, leading to under-consumption compared to the socially optimal level.

Merit goods are non-rivalrous and non-excludable, meaning that one person's consumption does not reduce the availability for others, and it is difficult to prevent people from using them. Examples include public education and healthcare, where access benefits the entire society. Therefore, while the other options accurately reflect characteristics of merit goods, the notion of them being rivalrous and excludable does not apply.