Report on the UK's Private and Public Goods and Social Welfare

This report provides an in-depth analysis of private versus public goods within the United Kingdom, exploring their definitions and economic implications. It examines market failures, the UK government's role in providing public goods, and difficulties in ensuring sufficient access. The report also discusses the merits and drawbacks of various goods in the UK market, contrasting merit and demerit products, and analyzing government policies and funding mechanisms aimed at increasing access to merit goods while limiting access to demerit goods. Real-world examples of government interventions and initiatives are provided, including discussions of Universal Credit and Attendance Allowance, alongside relevant references from the UK over the last three years, UK news, and official documents.

Private vs. public goods in the UK and social
welfare

EXECUTIVE SUMMARY
This report about private versus public goods in the United Kingdom and also about
social welfare. A public good is a kind of good which are consumed by everybody at the same
time in which no person can be excluded. In private goods it those kinds of goods in which no
competition in the context of conception and from that the customer can be excluded. This report
also explains the social welfare Central social welfare that includes separation groups of services
that provide benefits Healthcare education housing and personal social services. Welfare in the
United Kingdom begins to involve en19 100 and early 19 10. The maximum amount which can
be received by the individual in a week is found 74.7 0 if they are 2 5. So these are the things
which are explained in this report. In addition to this, there is a concentration on differences
among private goods that can be efficiently provided by the market and public goods. And also
explain about the Market fail to supply in a quotable way to public demerits and merits goods.
Along with this in this report, there is an explanation which is regarding intervention to control
access to these kinds of private and public goods.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK 1............................................................................................................................................4
Common Types of Market Failure...............................................................................................5
Why and how the UK government must provide public goods...................................................5
Question 2....................................................................................................................................6
Analyze examples of when the UK government has difficulty in providing sufficient access to
public goods?...............................................................................................................................6
TASK 2............................................................................................................................................7
Discuss the merits and drawbacks of various items on the UK market. Compare and contrast
real-life instances of merit and their beneficial effects on society with an examination of
demerit products in the UK and their negative effects on society...............................................7
Analyze how the UK government uses policies and funds to increase access to merit products
while discouraging and limiting access to demerit goods, using real-world examples of UK
government interventions and tactics...........................................................................................8
Explain the UK government's initiatives effectively addressed the equitable distribution of
merit goods. provide relevant instances and references from the UK over the last three years
(2018-2021), UK news, and UK official documents...................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and journal .....................................................................................................................10

INTRODUCTION
Public goods are defined as such goods that are consumed by everyone at the same time
and in this manner no people can be excluded from using the same. On the other hand, private
goods are defined as which are not associated with any sort of competition at the time of
consumption, and in this manner, various customers can be excluded. In economics, a private
good is defined as "an object that provides positive advantages to individuals" that is excludable,
that is, its owners can use private property rights to prohibit others who have not paid for it from
enjoying or consuming its benefits; and rivalrous. This report will be going to explain the
economic theories of the United Kingdom and also illustrate the economy of the United
Kingdom which required both public and private goods. Along with this report also explain
about the United Kingdom government has faced some difficulty in providing sufficient access
to the public goods and also going to explain that have the United Kingdom government use
policies and furnace to enhance access to merit goods.
MAIN BODY
TASK 1
Krugman refers to his novels, his blog on The New York Times, and his 2007 book The
Conscience of a Liberal while describing himself as a contemporary liberal (Essential of
economic, 2020). His well-known musings have sparked a flurry of favorable and negative
responses. International Economics: Theory and Policy deliver engrossing, well-balanced
discussion of the major principles and applications of the discipline's two primary topic areas.
According to the, Michael J Boyle, April 7, 2020, An intuitive introduction to theory is followed
by a thorough discussion of policy applications for both international commerce and
international finance. Krugman created New Trade Theory as a counter to earlier ideas that
explain international trade patterns using comparative advantage and natural resource
endowments. Krugman explains modern-day trades are a result of regular interactions with
customers and their preferences over significant brands which are supported by nearby substitute
or complementary products. In this manner, the home effect can be seen which is supported by
concentrating on some specific brands which are existed within the country. The public and
privates goods are required by the company because A non-excludable and non-rivalrous public

good (also known as a social good or collective benefit is both non-excludable and non-rivalrous.
Users cannot deny any sort of access during usage of such items when they are not paid for the
same. Market failure is defined as the economic condition in which is are not having sufficient
commodities and allocation. Rational collective results within market failure are not related to
the rational behavior of individuals and the same are the result of individual incentives.
Common Types of Market Failure
According to the MARTIN LUEKEN, 24 May 2018, Externalities, monopoly,
information asymmetries, and factor immobility are defined as the most prominent examples of
market failure which are faced within the market in a very short period. The problem related to
public goods is ultimately concluded with market failure. This is examined that public products
and services are when created then its usages ate not set for up to a limit for the client and this is
the major reason that there is no change seen within consumption. When a customer decides not
to pay over a public item then chances of market failure may arise as this is one of the worst
economic conditions. National defense is regarded as the example of public goods as there is no
difference related to the amount paid by citizens but also they are going to receive the same
perks and benefits. This is difficult to supply such a needed quantity of national defense based on
private manner.
Why and how the UK government must provide public goods
The main worry about public goods is that they will be underproduced. This is because
the producer, who must face the whole cost of creating the item, is unable to exclude benefit
receivers who do not contribute to the good's creation and so are unable to profit from many of
his productive efforts. Public goods will not be provided by the private sector. The reason is that
the people cannot be excluded from adopting public goods and cannot be charged money for
using them for a stop that is the reason private companies and goods cannot make money from
providing them. as the public goods are generally not properly and appropriately provided by the
private sector. Economists generally agree that government should provide pure public goods
and that taxes should be used to fund them. There are more difficult ways to figure out how
much each person is willing to pay, but using the tax system is considerably easier and more
politically acceptable. At the best of times, the UK benefits system may be complex.
Furthermore, it has been developing in recent years as successive governments have

implemented reforms. These concerns, however, should not overshadow a basic truth. They may
be eligible for assistance based on your specific circumstances. Universal Credit is a means-
tested subsidy that assists low-income working-age adults. Working-age is defined as being
under the State Pension Age. It will take the place of six existing means-tested benefits referred
to as legacy benefits.
Question 2
Analyze examples of when the UK government has difficulty in providing sufficient access to
public goods?
There are several reasons to which the organization facing difficulty in providing
sufficient access to public goods. Due to breaks, it's become much difficult for the United
Kingdom government to provide appropriate goods and services which are associated with the
public good. Government response to market failure includes some legislation and direct
provisional of merit goods and public good for stock due to breaks it there are several
modifications and technician poly subsidies permit. Neither buyers nor sellers directly pay for
public goods (though they frequently do so indirectly, such as through taxes), there is a market
failure by private markets in allocating resources to generate public goods. As public goods are
non-excludable and nonrenewable resources. So these characteristics of public goods make it
more difficult for the market procedure to sell the products to an individual consumer. According
to the Will Kenton, Nov 25, 2020, Nonexcludable means that it is much costly or impossible for
the individual to execute others from using a particular product. the biggest problem which is
facing by the United Kingdom government is that the buyer and the purchaser do not pay for
public goods since they purchase and received nothing for the provision. So that is the biggest
problem which is facing by the United Kingdom government. Attendance Allowance is for
persons over the age of 65 who are physically or intellectually handicapped and require
assistance or supervision with their care requirements, or who need supervision or support to
guarantee their safety. It is accessible to those who live alone or with others, and it is not
contingent on whether or not the needed help is provided.

TASK 2
Discuss the merits and drawbacks of various items on the UK market. Compare and contrast
real-life instances of merit and their beneficial effects on society with an examination of
demerit products in the UK and their negative effects on society.
According to the, laura Green, 27 June 2021, Traditional, command, market, and hybrid
economies are four types of economies. A market economy, often known as a free market
or free enterprise economy, is an economic system in which supply and demand decide
economic choices like the prices of products and services. Command economies, on the
other hand, make all of their economic choices through central planning by a single
authority. Governments' limited involvement encourages efficiency and free and increasing
competition. When there is rivalry, a company will do everything it takes to reduce
expenses and boost sales to raise profits.
Drawbacks
The United Kingdom benefits from trade agreements between the EU and other world
powers since it is a member of the EU. The EU as a whole has more bargaining power since it is
the world's largest economy. As a result, if the UK leaves the EU, it will lose bargaining leverage
and unfettered trade with other European nations. As the United Kingdom attempts to re-
establish trade agreements with other nations, they may become less advantageous. Brexit
uncertainty also generates volatility and has an impact on firms operating in the United
Kingdom. In the context of Brexit, several tariffs and duties were imposed over goods and
services which lead to an increased cost to raw material within imported and exported items.
Merit products are the polar opposite of demerit goods: they are items that are regarded
as socially valuable but are likely to be underproduced and under-consumed due to market
forces. Education, health care, social services, housing, fire protection, waste collection, and
public parks are all examples of merit goods. Merit goods, in contrast to pure public goods, can
and do come through the market, although not always in sufficient amounts to maximize societal
benefit. The social advantages accruing to society as a whole from the use of such commodities
tend to be higher than the private benefits accruing to the individual.
Public goods
Merit goods Private goods

Diminishability (non-
rivalry)
Non-diminishable (non-
rivalry)
Excludability Excludable
Benefits Individual and
communal (strong
positive externalities)
Provider Usually private
enterprise
Financed by Usually taxation
Analyze how the UK government uses policies and funds to increase access to merit products
while discouraging and limiting access to demerit goods, using real-world examples of UK
government interventions and tactics.
Merit products are commodities and services that the government believes individuals
will underutilize and therefore be subsidized or supplied for free at the point of use.
Consumption of merit products is frequently claimed to provide positive externalities, in which
the societal benefit outweighs the private profit. Net private benefit equals net consumer surplus,
which is the utility obtained from consumption less any private costs spent. In the case of
education, which is commonly regarded as a merit good, students and learners cannot possibly
understand the precise private advantage of excellent grades at school, college, or university.
Examples of negative externalities
Music that is too loud, a neighbor may be unable to sleep if you play loud music late at night.
Pollution. Local fishermen will be unable to catch fish if chemicals are produced with pollution
as a side consequence. On the basis of UK & EU Data Protection Bulletin, February 2021,The
negative externality will be the loss of income. Congestion. Driving a car pollutes the air and
contributes to traffic congestion. These are both external costs that are borne by other city
residents. A new road is being built. The external cost of building a new road is the loss of a
lovely environment that people can no longer appreciate.

Explain the UK government's initiatives effectively addressed the equitable distribution of merit
goods. provide relevant instances and references from the UK over the last three years
(2018-2021), UK news, and UK official documents.
According to the, Gov.uk, July 2021, Merit products are commodities and services that the
government believes will be underutilized and therefore be subsidized or supplied for free
at the point of use. Consumption of merit products is frequently claimed to create positive
externalities, in which the societal benefit outweighs the private profit. Subsidies can be
used to boost the production and consumption of valuable items. In some situations, the
rates charged have been reduced from what they would have been otherwise, with patients
only covering a portion of the treatment costs and the government making up the
difference by giving subsidies to suppliers. The United Kingdom and Germany have
signed a Joint Declaration promising stronger future collaboration on foreign and security
policy. On his first official visit to Jordan, James Cleverly, the UK's Middle East Minister,
emphasized the significance of the two countries' long-standing friendship. The
Information Commissioner's Office (ICO) submitted its Data Sharing Code of Practice to
the Secretary of State on December 17th, following section 121 of the Data Protection Act
2018 ("DPA 2018"), who will lay the code before Parliament for approval as soon as
practically possible. The Code shall be put before Parliament for 40 sitting days after it is
laid. It will be accepted if there are no objections. Transparency, legitimate basis for
utilizing personal data, accountability principle, security, and maintaining the record of
processing operations where data is shared between two or more controllers are all
addressed by the Code. The Code makes no mention of sharing data with processors.
CONCLUSION
From the above-mentioned report, it has been concluded that a public good may be
consumed by any person at the same time. Private good has no competition in the context of
conception which customer can be extruded. This report explains the several things which are
associated with the United Kingdom economy. United Kingdom economic theories of Coorg
man and was textbook which explains about the United Kingdom example from last past three
years. This report also explains that how the United Kingdom market fails to provide access to
amendatory private goods and policy. Along with their report explain the united government

policies and how they are facing major difficulty in providing sufficient access to public goods.
There are several reasons through which the United Kingdom facing difficulties. This report also
explains the social welfare programs which are adopted by the United Kingdom to access public
goods. Along with this report explain about the economic theories and also analyses the real-life
example and positive impacts on society in the context of the merit goods in the UK.
REFERENCES
Books and journal
Michael J Boyle, April 7, 2020, Market Failure, Available Through,
<https://www.investopedia.com/terms/m/marketfailure.asp>
MARTIN LUEKEN, 24 May 2018 Defining Marketing failure,, Available Through,
<https://www.edchoice.org/engage/defining-market-failure-with-examples >
Will Kenton, Nov 25, 2020, Welfare State, Available through,
<https://www.investopedia.com/terms/w/welfare-state.asp >
laura Green, 27 June 2021, Advantages of a Market Economy, Available through,
<https://www.investopedia.com/ask/answers/033015/what-are-some-advantages-market-
economy-over-other-types-economies.asp >
Gov.uk, July 2021, Official documents,Available through, <https://www.gov.uk/official-
documents >
UK & EU Data Protection Bulletin, February 2021,Bird and Bird Available through, <
<https://www.twobirds.com/~/media/pdfs/uk--eu-data-protection-bulletin---february-2021.pdf?
la=en&hash=ABC2D2F0D1ADD669EF075B440D0CA35D525BA25A >
Essential of economic, 2020 [online] Available through;
<https://read.kortext.com/reader/epub/598989>