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:

Greenhouse Effect

The trapping of the sun's warmth in the Earth's lower atmosphere due to the presence of greenhouse gases such as carbon dioxide and methane.

Consensus Science

Scientific understanding or conclusions supported by a general agreement among experts in the field.

Pioneer Science

The exploration and study of new scientific fields or questions, often leading to groundbreaking discoveries and advancements.

Climate Computer Model

A mathematical representation of Earth's climate system used to simulate and predict climate changes based on various environmental and human factors.