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.
d
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When U.S. computer companies hire workers in India to staff their customer service call centers, they are engaging in
A) predatory pricing. B) unfair trade practices. C) outsourcing. D) labor engagement.
The value of a stock depends on the ability of the company to generate dividends and the expected price of the stock when the stockholder sells her shares
a. True b. False Indicate whether the statement is true or false
For a monopoly, when the price effect outweighs the quantity effect of increased production:
A. the demand must be price inelastic. B. marginal revenue must be increasing. C. total revenues will increase. D. All of these statements are true.
Which statement is false?
A. saving plus consumption = disposable income. B. when C = disposable income, saving = zero. C. when consumption is larger than disposable income, saving is negative. D. Each statement is true.