Economics 9708 · AS & A Level · Government intervention in markets
Explain what a merit good means and why governments make merit goods such as healthcare available free of charge, and consider why this policy may not always work successfully.
Assess whether charging for healthcare at the point of use is likely to benefit consumers and providers more than making healthcare available to everyone free of charge.
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “AO1 Knowledge and understanding (max 3): A merit good is considered desirable but is underprovided/underconsumed (1); because of information failure/lack of awareness/it is better than people realise (1); when healthcare is supplied free of charge, the government encourages higher consumption and raises overall welfare (1).” …