Which of the Following Correctly Describes an External Benefit Resulting

question 163

Multiple Choice

Which of the following correctly describes an external benefit resulting from an individual's purchase of a winter flu shot?

• A) The flu shot is cheaper than the cost of treatment when you get the flu.
• B) The income of doctors increases when you get the flu shot.
• C) The flu shot reduces the likelihood of others catching the flu.
• D) The flu shot reduces the likelihood you will miss work as the result of sickness; therefore, you will earn more income.

---

Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Income Distribution

Income distribution involves the sharing of a company's profits among its shareholders or the allocation of income across various economic groups in a society.

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Unlimited Liability

A legal structure in which the owners of a business are personally responsible for all the debts and obligations of the business, without any limit.