What is an example of a merit good?

Examples of merit goods include education, health care, welfare services, housing, fire protection, refuse collection and public parks. In contrast to pure public goods, merit goods could be, and indeed are, provided through the market, but not necessarily in sufficient quantities to maximise social welfare.Click to see full answer. Correspondingly, what is merit goods in economics?Merit goods are those goods and services that the government feels that people will under-consume, and which ought to be subsidised or provided free at the point of use so that consumption does not depend primarily on the ability to pay for the good or service.Subsequently, question is, is food a merit good? Merit goods releases positive externalities. Like subsidised food and free home to poor reduces the incidents of the crime in the country. 5. Merit goods can be personal goods. Thereof, what are the characteristics of merit goods? Features of Merit Goods; Merit goods are not provided on the basis of consumer’s preference. Merit goods are given by the government for a particular section of the society. Merit goods produces social benefit by directly benefiting the sections that receive those goods. Merit goods produces positive externalities. What is the difference between a merit good and a public good?Public goods are defined as products where, for any given output, consumption by additional consumers does not reduce the quantity consumed by existing consumers. Merit goods are, for example, education and to some extent the health-care. They are provided by state as “good for you”.

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