Merit goods are products or services that are deemed beneficial for individuals and society, but are often under-consumed if left to the free market. Examples include education, healthcare, and public libraries. Governments often intervene to promote their consumption through subsidies or public provision, ensuring that everyone has access regardless of their ability to pay. The rationale behind merit goods is that they can lead to positive externalities, such as a more educated workforce or improved public health. By encouraging consumption, governments aim to enhance overall societal welfare and address inequalities that may arise from market failures.