Suppose That Flu Shots Create a Positive Externality Equal to $12

question 69

Multiple Choice

Suppose that flu shots create a positive externality equal to $12 per shot. What is the relationship between the equilibrium quantity and the socially optimal quantity of flu shots produced?

• A)They are equal.
• B)The equilibrium quantity is greater than the socially optimal quantity.
• C)The equilibrium quantity is less than the socially optimal quantity.
• D)There is not enough information to answer the question.

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Definitions:

Inflames Arteries

A condition wherein the arterial walls become inflamed, potentially leading to atherosclerosis and cardiovascular diseases.

Type A Personality

A personality type characterized by high levels of competitiveness, self-urgency, and a constant sense of urgency.

Waste My Time

Engaging in activities or interactions that do not bring any value or positive outcome, often leading to frustration or regret.

Type D Personality

A personality type characterized by high levels of stress, negativity, and the tendency to experience emotions intensely, particularly negative ones.