merit good

merit good definition - business

merit good

A good or service that public policymakers feel will be under-consumed and should be subsidized. In general, merit goods have positive externalities. For example, a library and public health services are generally considered merit goods. Compare demerit good.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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