What is an externality? Explain how someone receiving a meningitis vaccination is an example of an externality in the market for health care
What will be an ideal response?
An externality is a benefit or cost that affects someone who is not directly involved in the production or consumption of a good or service. Someone who receives a meningitis vaccination is protecting not just himself or herself from the disease, but also reduces the chances that people who have not been vaccinated will contract the disease. In this case, receiving the vaccination provides a positive externality.
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A government decision to privatize a sector of the economy formerly operated by the government is an example of ________ policy.
A. aggregation B. structural C. fiscal D. monetary
An essential characteristic of credit unions is that
A) they are typically large. B) branching across state lines is prohibited. C) their lending is primarily for mortgage loans. D) they are organized for individuals with a common bond.
If a bank does not loan out all of its excess reserves, the amount of money the banking system can create is greater than if all of the excess reserves were loaned out
Indicate whether the statement is true or false
Mandatory spending makes up
A. well over half of all spending. B. well under half of all spending. C. just under exactly half of all spending. D. just over half of all spending.