Which of the Following Statements Is TRUE

question 71

Multiple Choice

Which of the following statements is TRUE?

• A) The Coase theorem suggests that the efficient equilibrium quantity of flu shots will maximize the sum of producer and consumer surplus.
• B) It is easy to internalize the benefits of getting a flu shot because only two companies produce flu vaccines.
• C) The market for flu shots could be efficient if the beneficiaries of the external benefits sufficiently compensated those receiving the shot.
• D) To internalize the costs of getting a flu shot, people who receive the vaccine should pay other people to be vaccinated.

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Definitions:

Behaviour

The way in which one acts or conducts oneself, especially towards others, driven by internal or external stimuli.

Immediate Reinforcement

The provision of a reward or penalty right after a specific behavior, to increase the likelihood of that behavior occurring again.

Desirable Behaviour

Actions or conduct that are considered preferable or appropriate within a given social or organizational context.

Reward

A reward is a benefit or recognition provided to someone for their performance, achievement, or behavior, aiming to motivate and encourage specific actions or outcomes.