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Examine the reasons why the government intervenes in the provision of National Health and Education.
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Examine the reasons why the government intervenes in the provision of National Health and Education. Both National Health care and Education are considered to be merit goods. This means that not only are they a basic human right but also, a service or good that has varying positive externalities associated with it. (Important to define both merit good and positive externality at this early stage) Without government intervention in healthcare, this sector would be a free market and so everything would have to be purchased straight from the source (i.e. doctor's surgery or hospital) also if this system was to work then people would have to take out private health policies from insurance companies so that they may be able to pay for all the medical treatment needed in their lives. An example of where healthcare is provided in a free market is the US; as a result, nearly 40 million citizens...
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