In 2010, the Center for Disease Control has recommended that every child between the ages of 6 months and 18 years be vaccinated,
except those with a serious egg allergy. Dr. Berreman states,"By protecting ourselves from flu, we also protect our families and neighbors." Which is a solution that could be used to achieve a more efficient allocation of resources in the presence of this externality?
A) The government could tax the producers of the flu vaccine.
B) The government could tax the consumers of the flu vaccine.
C) The government could offer a free flu vaccine clinic.
D) The government could increase the price of flu vaccines.
C
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In an oligopolistic market there is likely to be
A. neither allocative nor productive efficiency. B. little consideration of the actions of rival firms. C. price-taking behavior on the part of firms. D. homogeneous but not differentiated products.
According to Professor Baotai Wang who examined the crowding out phenomenon in Canada between 1961-2000, as discussed in the Case in Point, which of the following categories of government expenditures are most likely to lead to crowding out?
A) expenditures for health and education B) expenditures for infrastructure and capital C) expenditures for the protection of persons and property, including defense spending D) expenditures for government and social services
The tragedy of the commons is the absence of incentives to
A) correctly measure the marginal social benefit from a common resource. B) prevent under use of the common resource. C) prevent overuse and depletion of a common resource. D) discover the common resource.
If the U.S. government increases spending, the U.S. Treasury
a. has the legal right to issue currency to pay for the spending. b. does not have the legal right to issue currency to pay for the spending. c. usually pays for the spending by selling bonds directly to the Fed. d. seldom pays for the spending by selling bonds to the public.