Question

analyse three ways a government could encourage consumption of a merit good

Answer 1

The three ways for government to encourage the consumption of merit goods are:-

Through various forms of subsidies

Through government provisions

Using methods of media to influence consumer behavior

Explanation:

• Merit goods  are necessary  for the welfare of the people  and they should be provided by the government on subsidized rates. The subsidies help with increasing the utilization levels of the merit goods.
• Certain merit goods like good health care, good education facilities, housing benefits and more that can be provided by the government through certain legislation for certain sections of the people living in the society
• In many countries most of the merit goods are provided through certain discounts or free for their citizens. These should be well advertised for people to understand that the goods are for their welfare and  benefits.

To know more about merit goods

Explain the concept of private goods, social goods and merit goods.

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