Extremely heavy rainfall can often make houses flood. The government safeguards the area by using flood defence schemes, while households purchase sandbags to shield their houses. How would an economist classify these items?
- Aflood defence schemes: merit goods; sandbags: private goods
- Bflood defence schemes: merit goods; sandbags: public goods
- Cflood defence schemes: public goods; sandbags: private goods
- Dflood defence schemes: public goods; sandbags: public goods