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    -Sorry in advance if this is on the wrong forum-

    Why can exercise be called a merit good when isn't visible? Or have I misunderstood?

    Any input appreciated)
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    (Original post by Lizzie33)
    -Sorry in advance if this is on the wrong forum-

    Why can exercise be called a merit good when isn't visible? Or have I misunderstood?

    Any input appreciated)
    Merit goods tend to be underprovided by the market due to positive externalities. In this case, you could argue that exercise improves health and reduces the burden on the wider health system. This is a benefit to a third party.

    You might want to think about the "demand" for exercise as the "demand" for sports classes etc.

    Hope this helps,

    Tom (IDK-tuition.com, free online economics resources and videos)
 
 
 
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