Which type of goods is provided by the government to address societal needs regardless of individuals' ability to pay?

The correct answer is merit goods, as they are services or products that the government provides to enhance social welfare, addressing needs regardless of an individual's ability to pay. The rationale is that the market may underprovide these goods because individuals might not be able to afford them, leading to unequal access. Examples of merit goods include education and healthcare, which are often subsidized or provided for free to ensure that all citizens can access them, regardless of their financial situation.

While public goods are also provided by the government, they are characterized by non-excludability and non-rivalry—meaning that one person's consumption does not reduce availability for others, like national defense or public parks. Private goods are those that are sold in the market and typically require payment, which means access is dependent on individuals' financial ability. Essential goods refer to necessary items for daily living but do not imply that they are necessarily provided by the government without charge. Merit goods specifically highlight the role of government intervention to promote social equity.