Thus, merit good is a type of good that must be possessed by the society irrespective of the ability of people to pay for it (Alain, 2009). This essay is aimed at analysing a merit good provided by government, and the analysis focuses on the role of government in providing such good to public. The analysis also includes an evaluation of whether private sector can provide such goods, and assesses the positive externalities associated with such merit good. Finally, the consequence from providing this merit good by the free market will be assessed in this essay.
Selection of Merit Good Provided by Government
As analysed above, merit good is one such good that is generally provided by government with a view to ensure the development of the society. It is provided without considering the ability of the service consumer to pay for it, and this solely defines the main purpose behind providing such merit good. Government accounts for providing various such merit goods, but the one that has been selected for the purpose of analysis is education. Education is an important merit good that is provided by government with a view to ensure the enhancement of the society at large. This merit good of education is provided by government with a view to improvise the societal performance, because there is huge level of imperfect information associated with this merit good. The parents are mostly unaware of the long term benefits that they could achieve from making investment on the education of their children. As a result, government undertake initiatives to provide education services to children so that they could become the primary contributor towards the economy’s performance and development in future (Public Goods and Merit Goods, 2014).