Before the Flu Season Begins, Jeremy Gets a Flu Shot

question 173

Multiple Choice

Before the flu season begins, Jeremy gets a flu shot. As a result, Jeremy and several of his friends and relatives avoid the flu for the entire flu season. It would make sense to argue that

• A)flu shots provide a positive externality, and that flu shots should be subsidized.
• B)if flu shots are not subsidized, then the number of people getting flu shots will be smaller than the socially optimal number.
• C)the externality generated by flu shots is more like the externality generated by education than the externality generated by pollution.
• D)All of the above are correct.