What is the difference between a merit good and a public good?

A merit good is a good which has positive externalites and therefore people do not consume enough of them. For example, vaccinations.

A public good has two characterisitics, it is non-rival: this means that for any given consumption level, more people using it does not diminish anyone else's consumption and non-excludable: we can't stop people using it. An example is defence. Non-excludabliltiy means there is a free rider problem and the good will be underprovided in the market.

ED
Answered by Ella D. Economics tutor

6955 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Define price elasticity of demand and explain the factors affecting it


Is inflation always bad?


Analyse three consequences of high inflation on individuals in the UK


Explain why the average and marginal revenue curves for a perfectly competitive firm are horizontal while those of a monopoly slope downwards.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning