Chemistry Reference and  Research
           
 
Periodic Table
- standard table
- large table
 
Chemical Elements
- by name
- by symbol
- by atomic number
 
Chemical Properties
 
Chemical Reactions
 
Organic Chemistry
 
Branches of Chemistry
Analytical chemistry
Biochemistry
Computational Chemistry
Electrochemistry
Environmental chemistry
Geochemistry
Inorganic chemistry
Materials science
Medicinal chemistry
Nuclear chemistry
Organic chemistry
Pharmacology
Physical chemistry
Polymer chemistry
Supramolecular Chemistry
Thermochemistry

Merit good

A merit good is a good deemed to have positive externalities, and provided by the government because of this, in order to internalise the externality. Inefficient provision of merit goods leads to "government failure".

Merit goods help the society due to their positive externalities, and are not produced with the aim of profit maximization. The private optimum will be less than the social optimum. Thus the government, if not providing the merit goods, will try its best to increase production and quantity supplied by providing subsidies, etc...

01-04-2007 01:16:19
The contents of this article are licensed from Wikipedia.org under the GNU Free Documentation License. How to see transparent copy