-Vaccinations Provide Both Private Benefits and External Benefits

question 123

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) $1 per vaccination.
• D) $2 per vaccination

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Definitions:

Siblings

Individuals who share one or both parents in common; brothers and sisters.

Control

The power to influence or direct people's behavior or the course of events.

Situation

The set of circumstances or the state of affairs at a particular time and place.

Selective Optimization

A strategy of focusing on and maximizing specific areas of functioning and compensating for declines in other areas.