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

6890 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How can globalisation increase domestic competitiveness?


What is the difference between macro and micro economics?


What is the deadweight loss of a tax and how do I calculate it?


How do you find the profit level of a firm graphically? Why is this the case?


We're here to help

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

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences