-Vaccinations Provide Both Private Benefits and External Benefits

question 202

Multiple Choice

-Vaccinations provide both private benefits and external benefits. The table above gives information on the marginal private benefit and marginal external benefit associated with vaccination against varicella (chicken pox) . If the marginal cost of a varicella vaccination is $10, to achieve an efficient quantity of vaccinations, the government could provide a subsidy of

• A) $4 per vaccination.
• B) $3 per vaccination.
• C) $2 per vaccination
• D) $1 per vaccination.

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Definitions:

Income Statement

a financial statement that summarizes a company's revenues, expenses, and profits over a specific period of time.

Cash Flows

The aggregate volume of funds moving into and out of a corporation, impacting its ability to cover short-term obligations.

Income Statement

A financial statement that shows the company's revenues and expenses over a specific period, indicating how the revenues are transformed into net income or loss.

Net Income

The total profit of a company after all expenses, including taxes, have been deducted from total revenue.