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.

---

Definitions:

Opportunity Cost

The foregone benefit that could have been obtained from an option not chosen.

Inventory Holding

The costs associated with storing unsold goods, including warehousing, insurance, and depreciation.

Inwards Inspection

Inwards Inspection refers to the process of checking, validating, and approving materials or products received from suppliers before they are used in production or put to stock.

Rental

The payment, usually monthly, owed by a tenant to a landlord for the use of real estate, equipment, or other properties.