Edgar's Expected Private Benefit from the Flu Shot Is $15

question 47

Multiple Choice

Edgar's expected private benefit from the flu shot is $15, and it would cost him $20 to get vaccinated. Therefore, which of the following is correct?

• A) It is socially optimal for Edgar to get the flu shot if the social benefits of the shot exceed $20.
• B) The external benefits of the flu shot equal $5 ($20 - $15).
• C) Even without a government subsidy, Edgar is certain to be vaccinated.
• D) The deadweight loss is eliminated if Edgar is vaccinated and the external benefits are $4.

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Definitions:

Cerebral Cortex

The outer layer of the brain, involved in high-level functions such as sensation, voluntary muscle movement, and thought.

Alcohol Abuse

A pattern of drinking that results in harm to one's health, interpersonal relationships, or ability to work.

Social Inhibitions

The conscious or subconscious avoidance of a behavior or expression that is perceived to be socially unacceptable or inappropriate.

Active Ingredient

The component in a substance or product that is responsible for its therapeutic effects.