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 in the diagram reflects private benefits and the other reflects social benefits.
Refer to the figure above.This externality could most effectively be corrected by:

• A) taxing vaccines.
• B) encouraging people to negotiate private payments to those who receive the vaccine.
• C) subsidizing vaccines.
• D) free provision of 275 vaccines.

---

Definitions:

Community Mental Health Programs

Initiatives aimed at providing mental health services and support to people within their local communities, often focusing on outreach, prevention, and accessibility.

Prevention

Measures or actions taken to reduce the risk or stop the development of a disease, injury, or other adverse health outcomes.

Managed Care Program

A system of health care coverage in which the insurance company largely controls the nature, scope, and cost of medical or psychological services.

Anger Management Program

A therapeutic program designed to help individuals control or express their anger in a constructive and healthy manner.