Title: What is a Merit Good?

Essay Details

Subject: Business
Author: Ernesto M
Date: May 6, 2016
Level:
Grade: A
Length: 1 / 239
No of views: 0
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Essay text:

Economists generally agree that a more productive workforce is desirable as it can lead to economic growth and higher national income. Proof of this can be seen from the difference between the average GDP of countries that have a majority of its workforce in primary industries and those countries whose workforce is mainly in secondary or tertiary industries...

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A more educated workforce also increases the likelihood of higher value added foreign investment as there will be a ready supply of educated labour. As merit goods are not public goods, they are in effect excludable and exhaustible. An example is again, places in an educational institution. Due to this scarcity, merit goods will command a price on the free market...

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