Flu Shots Provide a Positive Externality

question 77

Multiple Choice

Flu shots provide a positive externality. Suppose that the market for vaccinations is perfectly competitive. Without government intervention in the vaccination market, which of the following statements is correct?

• A)At the current output level, the marginal social benefit exceeds the marginal private benefit.
• B)The current output level is inefficiently low.
• C)A per-shot subsidy could turn an inefficient situation into an efficient one.
• D)All of the above are correct.

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Definitions:

Deceit

The act of deceiving someone by concealing or misrepresenting the truth.

Zoning By-Laws

Regulations enacted by municipalities controlling the use of land and buildings, specifying types of buildings allowed in particular areas.

Physical Injury

Bodily harm caused by external force or action, which can include cuts, fractures, burns, or internal damage.

Negligent Misstatement

A false statement made carelessly, often leading to financial loss or damage without fraudulent intent.