Before the Flu Season Begins, Jeremy Gets a Flu Shot

question 173

Multiple Choice

Before the flu season begins, Jeremy gets a flu shot. As a result, Jeremy and several of his friends and relatives avoid the flu for the entire flu season. It would make sense to argue that

• A)flu shots provide a positive externality, and that flu shots should be subsidized.
• B)if flu shots are not subsidized, then the number of people getting flu shots will be smaller than the socially optimal number.
• C)the externality generated by flu shots is more like the externality generated by education than the externality generated by pollution.
• D)All of the above are correct.

---

Definitions:

Ranked Hierarchy

An organizational structure where entities are ranked according to levels of importance or authority.

Collective Identity

A shared sense of belonging to a group that shapes the members' perceptions, actions, and sense of self.

Surplus Goods

Items produced in excess of what is needed, often leading to stockpiles or distribution beyond the initial target market.

Economic System

An organized arrangement for producing, distributing, and consuming goods.