Give 3 advantages and 3 disadvantages of merit goods economics. Please fast asap
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Merit goods directly benefit their receivers and create social benefits as well. Construction of schools builds a literate society which creates a better country. 2. Proving subsidised food to poor ( Antyodaya Ann Yojna which provides wheat, rice at cheap rate to poor) 3.
A merit good can be defined as a good which would be under-consumed (and under-produced) in the free market economy. ... This means that there is a divergence between private benefit and public benefit when a merit good is consumed (i.e. the public benefit is greater than the private benefit).
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Merit goods is the goods or services provided free of charge by the government for the benefit of the society as a whole[1],Market failure（ Cowen, 1988） is due to the factors such as monopoly mechanism caused the price mechanism, can't allocate resources efficiently. And market failure is also used to describe market forces cannot satisfy the condition of public interest.
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