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Planning My economics - Essay Example

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This essay "Economics Module" discusses in the execution of the trading activity, demerit and merit goods attract either positive or negative externalities, which refers to the cost implications or the acquired benefits that may impact an interested party…
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Planning My economics
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Download file to see previous pages As much as a government may attempt to meet the health demands of its population through the injection of adequate resources, fulfilling them may not be attainable. This becomes harder because most of the services offered through government channels are at no cost hence making it harder to fulfill the fundamental principles embedded. Using this as the basis, the government may allow the involvement of the private sector in meeting these needs with the overall objective being the maintenance of a healthy population that is likely to generate positive externalities. As documented above, the intervention of the government in ensuring that its population remains healthy is vital to policy development and providing the required infrastructural support. On one hand, merit goods tend to influence positive externalities such as having a healthy population that would propel an economy, but it may also influence market failure. The market failure may result from the lack of reliable health insurance options that may lead to medical debts that may puncture a functional economy. Government intervention may be a possible intervention strategy, but it should have the interest of the population at the center by communicating the benefits and the risks of the strategies that it chooses to implement on its citizens. As a recommendation, the government should use citizens involvement in choosing the appropriate merit goods or services that best suit them rather than applying a uniform approach to health services delivery. ...Download file to see next pagesRead More
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