Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.


Econ Project

Undersupply of merit good

richard park

on 21 April 2010

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Econ Project

title Market Failure Presentation
Undersupply of Merit Goods Ricardo
Jan Jan Jan 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 good? Social efficiency -when community surplus is maximized Real example - Subsidy on school -US federal government decided to make school bonds...

-School bond is a form of subsidy that government directly subsidizes
the issuers, or the consumers.
Real example - Sports facility What can government do? -Government produce good by itself

-Subsidize the good or service

-Subsidize the qualified consumers


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

-Cost (*****)

-Minimal effect on short term

-Limited liberty

Full transcript