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.

Answered by Ella D. Economics tutor

5948 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Discuss whether a reduction in taxation will always increase a country’s economic growth rate.


Define what a Demerit Good is and explain why they are often over-consumed in the free market.


Discuss two ways in which a country's international competitiveness could increase (8)


Explain using a diagram why when people have medical insurance the PED for medical treatment is likely to be very low whilst the YED is likely to be high


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo
Cookie Preferences