Question

Which economist mentioned division of public goods in public goods and merit goods?

Answer 1

The two characteristics of public goods are non-rivalry and non-excludability. Non-rivalry means that the consumption of the good by one consumer does not decrease the availability of the good to other consumers. Consider the street lights. One consumer's use of street lights does not decrease others' use.

Answer 2

Solution:

It was Adam Smith who differentiated the public goods and merit goods economically.

The conception of the merit goods were further analysed by W. Ver Eecke in around 2003.

For the purpose of policy decisions, it is highly essential to differentiate between the public goods and merit goods by the government.