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

7323 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is the likely effect of Brexit on the UK economy?


Evaluate government policies that could be used to reduce income inequality and wealth inequality in a developed country of your choice. 25 marks


To what extent is (third degree) price discrimination beneficial to consumers and producers?


What are negative externalities?


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