Economics (merit good) education Essay Example | Topics and Well Written Essays - 1500 words

Economics (merit good) education - Essay Example Moreover, education makes one be in a position to acquire employment, obtain income and consequently have an improved way of life (Ver Eecke, 2003, p. 701). Other merit goods include goods and services like health services that the government provides for its citizens for the benefit of the community. This is usually conducted because it would lead to under-provision within the community. It also generates difference between the social and private expenses in addition to the advantages of creation and exploitation leading to the risk of not selling the goods and services (Besley and Ghatak, 2003, p. 235-249). Merit goods are also those goods and services that the government thinks consumers will under utilize, and they ought to be provided free for the entire society. Both private institutions and the government offer education, but in case education was left to be an expense, where parents are expected to pay for education then education would be under-consumed by the members of the society. Poor parents might not understand the importance of education. Similarly, their children might not see the benefits of education (Besley and Ghatak, 2003, p. 235-249). In reality, education should provide peripheral benefits that could not be considered by the open market. The benefits include increasing profits and production for present and future productions and expansion in the work-related movement of the work force, which must assist in the reduction of unemployment and consequently lower welfare expenditure (Dixit, 2002, p. 38). The administration provides this merit good to urge its utilization so those particular optimistic externalities related with merit commodities can be realized (Dixit, 2002, p. 38). They also aim at overcoming the failures of information connected to education, not when the private longer-term benefit of utilization is better than the shorter-term advantage of utilization. The government also believes that consumption