Merit Goods (Revision Presentation)
- AS, A-Level
- AQA, Edexcel, OCR, IB
Last updated 22 Mar 2021
This is a revision presentation on merit goods
Merit goods and services create positive externalities when consumed and these 3rd party spill over benefits can have a significant effect on social welfare. Market failure occurs when merit goods and services are under-consumed under free market conditions. Policy intervention can help either through offering financial incentives (e.g. consumer or producer subsidies) or through behavioural nudges and information campaigns designed to change our choices.