Help in economics as level

[fahadzaidi96]

Discuss how a government might increase the provision of public and merit goods

Please tell me the answer in details
I know its subsides,taxes and borrowing/loans

But I think its not part of our AS course as we are not taught about the adv/d.adv about taxes,subsides borrowing and this question came in 2002 so maybe our syllabus might have changed could anyone confirm it to me please

 

[iamjason8]

Hi there. I took AS Economics last year (I sat the Oct/Nov exams) so what's in my notes should still be relevant.

I think aside from the methods you had mentioned, other means of government intervention are Maximum/Minimum Price Controls and Direct Provision.

I don't know what you mean by "borrowing/loans" as I did not learn it last year.

Even though your teacher might have not taught it in class, the advantages and disadvantages are pretty straight forward so you can probably figure it out yourself.
@ = Advantage
# = Disadvantage

Taxes
@ Increases the cost of production (for demerit goods? Why would you tax a merit good lol, you're trying to increase consumption), which decreases quantity demanded.
@ Increases revenue for the government (which can then go towards subsidizing public/merit goods).
# As demerit goods are usually price inelastic (because they are addictive such as alcohol and cigarettes) taxes may not always prove effective.

Subsidies
@ Decreases the cost of production, which increases quantity demanded (not demand) for the goods. Should increase consumption because the goods become more easily accessible to consumers.
# Increases government expenditure

Does this answer your question? Hope this helped but sorry if it didn't..

Good luck though!