Difference between revisions of "Merit good"
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(Replacing page with 'A '''merit good''' is a STUPID CREATIONIST!') |
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| − | A '''merit good''' is a | + | A '''merit good''' is a product ([[good]]) or service that some elite deems so desirable that the [[government]] intervenes, even though markets could satisfy consumer wants efficiently. However, if left to the individuals ability to pay, these services would not be produced in sufficient quantities. This would be undesirable for a society that benefits from a well educated, healthy and housed population. The state is concerned with maximizing the consumption of certain goods which it deems to be desirable; goods and services where the social benefits exceed the private benefits. Examples are public hospitals, libraries, parks and municipal golf courses. |
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| + | [[category:economics]] | ||
Revision as of 18:07, March 2, 2008
A merit good is a product (good) or service that some elite deems so desirable that the government intervenes, even though markets could satisfy consumer wants efficiently. However, if left to the individuals ability to pay, these services would not be produced in sufficient quantities. This would be undesirable for a society that benefits from a well educated, healthy and housed population. The state is concerned with maximizing the consumption of certain goods which it deems to be desirable; goods and services where the social benefits exceed the private benefits. Examples are public hospitals, libraries, parks and municipal golf courses.