Suppose That a Vaccine Is Developed for a Highly Contagious

question 60

Multiple Choice

Suppose that a vaccine is developed for a highly contagious strain of flu. The likelihood that anyone will get this flu decreases as more people receive the vaccine. One of the demand curves below represents the private demand for the vaccine and the other represents the social demand for the vaccine. The government could increase total economic surplus by:

• A)taxing production of the vaccine.
• B)encouraging people to pay each other to get the vaccine.
• C)subsidizing production of the vaccine.
• D)providing 250 doses of the vaccine for free.

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability in a dataset, commonly used in finance to quantify the risk associated with a security's price movements.

Risk

The exposure to the possibility of financial loss or variation in the returns of an investment.

Standard Deviation

Standard deviation measures the amount of dispersion or variability in a set of values, indicating how much the individual data points differ from the mean or average.

Utility Score

A numerical assessment that quantifies the satisfaction or utility an individual receives from making certain choices or consuming various goods and services.