Flu Shots Provide a Positive Externality

question 150

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 cost exceeds the marginal private cost.
• B)The current output level is inefficiently high.
• C)A per-shot tax could turn an inefficient situation into an efficient one.
• D)At the current output level, the marginal social benefit exceeds the marginal private benefit.

---

Definitions:

Emergence

The process of coming into being or of becoming prominent or important, often used in the context of ideas, trends, or phenomena.

Ku Klux Klan

A white supremacist hate group in the United States, originally founded in the aftermath of the Civil War, known for promoting racism, anti-Semitism, and xenophobia.

Reconstruction Years

The period after the Civil War, from 1865 to 1877, during which the United States worked to rebuild and integrate the Southern states.

1920s

A decade of economic prosperity and cultural dynamism in the Western world, particularly in the United States, known for the Jazz Age, the Harlem Renaissance, and significant social changes.