Evaluate the use of government policies to increase the consumption of health care.

need 15 mark question style

Health care is classified as a merit good because consuming it provides benefits to others as well as to the individual consumer. For example, while inoculation against a contagious disease generates a private benefit to those inoculated as well as others. However, few would choose inoculation only to protect others. Therefore, the demand for healthcare will be less than the socially efficient quantity. Healthcare is classified as a merit good because consuming it provides benefits to others as well as to the individual consumer. For example, while inoculation against a contagious disease generates a private benefit to those inoculated as well as others. However, few would choose inoculation only to protect others. Therefore, the demand for healthcare will be less than the socially efficient quantity.