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Econ presentation

undersupply of merit good...

richard park

on 21 April 2010

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Transcript of Econ presentation

Double click anywhere & add an idea Market Failure Presentation Undersupply of Merit Goods Richard Park JanJanJan What is merit good? - Goods or services that are
good to the individual and

- Has positive externality Externality - When a production or consompution of a good
has an unintended effect on a third party Undersupply of Merit Goods? What can government do? -Subsidize the good or service

-Subsidize the qualified consumers


-Make laws to make consumption as duty
Downside of government action -cost

-Minimal effect on short term

-Limited liberty
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