What is an example of a merit good?
What is an example of a merit good? A merit good is a good which when consumed provides external benefits, although these may not be fully recognised – hence the good is under-consumed. Examples include education and healthcare. As can be seen, when a merit good is consumed it generates positive externalities. What is provision of merit goods? The concept of merit goods assists governments in deciding which public or other goods should be supplied. Merit goods are commodities that the public sector provides free or cheaply because the government wishes to encourage their consumption. What is merit and demerit...