Question

Who mentioned division of public goods and merit goods?

Answer 1

Adam Smith

One consumer's use of street lights does not decrease others' use. Solution: It was Adam Smith who differentiated the public goods and merit goods economically.

Answer 2

Explanation:

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.