An Overview of the Provision of Goods by the Government
This post will help to further your understanding of why the government provides the provision of public and merit goods, as part of the Prelim Economics course. Market failure can lead to many externalities that result from private transactions, many of which are negative. Moreover, there are some goods and services that are beneficial for society, but provide no incentive to the private firm sector to be produced. These are known as merit and public goods. As a result, governments often provide these goods to benefit society.
This video below explains the key characteristics of public and merit goods.
