For example, ordinary citizens regard an appendectomy as health care that is a merit good
. But would they count cosmetic surgery?
We get leaders we deserve, and good citizens will merit good
All the children of the nation are our children who merit good
education and care, the most important things and the bases for everything," HM the King said.
Policymakers are concerned about whether a household can afford to purchase a pre-defined quantity of a merit good
. A household is said to "afford" such a purchase if it would be left with enough income to meet its other socially defined minimum needs.
The marginal utility of consumption of either the private good or the merit good
is positive but diminishing.
Since this is pre-dominantly a 'merit good
' catering mostly to poor households, there is a strong case for subsidising this level of education.
Furthermore, several economists hesitate as to whether the concept of public good is an exclusive tag for an economic event or whether one economic event can on the contrary be called at the same time a public and something else too (a private good, or a merit good
: a good (or service) whose consumption by the poor is valued by society as a whole.
In his 1956 paper, A Multiple Theory of Budget Determination, economist Richard Musgrave introduced the concept of merit good
, a valued good (such as education) that is under-consumed if provided by the market mechanism because positive social externalities are not internalized by individual consumers.
of a merit good
by demonstrating not only that Musgrave's original intuition
Congress seems to have decided that saving for retirement is a merit good
that should be encouraged.