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Merit, Demerit and Public Goods - Coggle Diagram

- - - - The government can educate the public through mass media and carry out campaigns to teach the citizens the importance in consuming the merit good
      - Advantages
        
        Directly addresses information failure
        
        Appealing
      - Disadvantages
        
        Long term / take time for habits and norms to develop
        
        Uncertainty
        
        Costly
- - - - Total ban
- - - - A situation where the government directly controls the supply of the good/service and makes available free of charge
      - Advantages
        
        ensures efficiency in the market by solving the shortfall directly
        
        Allows government for greater control over the quality and quantity of the good.
      - Disadvantages
        
        There may be a lack of knowledge
        
        Administrative costs may be higher than necessary
        
        Problems in financing
        
        Disincentive Argument
        
        Budget Deficit Argument
        
        Opportunity cost Argument