To Ensure That All Families Are Protected from Influenza, Berkeley's

question 54

Multiple Choice

To ensure that all families are protected from influenza, Berkeley's Public Health division is giving free flu vaccines at a Free Flu Clinic on October 28, 2010. What is NOT true about the externality that exists in this example?

• A) Marginal social cost for flu vaccines will decrease when there is a subsidy.
• B) Marginal social benefit for flu vaccines is greater than marginal private benefit for flu vaccines.
• C) To increase the quantity consumed of flu vaccines, there will be public provision of the flu vaccines.
• D) Being vaccinated against the flu creates an external benefit.

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Definitions:

Departmental Overhead Rate

A rate used to allocate overhead costs to individual departments based on relevant criteria, such as direct labor hours or machine hours.

Departmental Overhead Rate

A calculation used to allocate indirect costs to specific departments, based on a relevant activity base, enhancing cost accuracy per department.

Cost Flows

Describes the movement and allocation of costs within an accounting system, illustrating how costs are charged, transferred, and absorbed in the production process.

Activity-Based Costing

A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption of each.