This report declares that the private sector primarily operates under the dynamics of the free market system. Many individuals in the society would miss enjoying the benefits of merit goods if left to the private sector because they would appropriate a high price for the good or service, limiting the individuals who can have access to the good. Therefore, many people would be unwilling to access the merit goods at a high cost. The inaccessibility would lead to underproduction of the good, and ultimately leading to underutilization of the good or service. In most cases, government institutions are tasked with handling the provision of merit goods.
This paper makes a conclusion that education is usually considered a merit good, and especially the basic education from early childhood to the university or college. An educated society results in reduced cases of hard crime, increased productivity, higher rates of employment and a growing economy because of direct input of high-quality labour. An educated society also translates into strong governmental and non-governmental institutions and interests from foreign companies who would thrive with good quality employment. The government would also benefit directly from increased tax collection from employed individuals. The present secondary education system in the UK is an improvement of an older system that allotted students at the age of 11 years to either of the three school types through performance and selection examinations.