Flu Shots Provide a Positive Externality

question 77

Multiple Choice

Flu shots provide a positive externality. Suppose that the market for vaccinations is perfectly competitive. Without government intervention in the vaccination market, which of the following statements is correct?

• A)At the current output level, the marginal social benefit exceeds the marginal private benefit.
• B)The current output level is inefficiently low.
• C)A per-shot subsidy could turn an inefficient situation into an efficient one.
• D)All of the above are correct.

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Definitions:

Bank Reconciliation

The process of matching and comparing figures from the accounting records against those presented on a bank statement to see if they are consistent.

Company Books

Official records maintained by a business documenting its financial transactions and activities.

Outstanding Checks

Checks that have been issued and recorded in a company's financial records but have not yet been cashed or cleared by the bank.

NSF

An acronym for "Non-Sufficient Funds," indicating that a check cannot be processed due to insufficient money in the account.