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

7762 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain the Kinked Demand Curve


What are the determinants of Demand? What is the effect of a change in the determinants of demand?


Why is the marginal return curve twice as steep as the average revenue curve in microeconomics firm theory?


Calculate the coupon rate for a 5 year £500 bond that has a coupon value of £10


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:

© 2026 by IXL Learning