For part B, blank options: a. does/ does not b. equal to/ larger than/ smaller than For part C, blank options: a. corrective tax/ corrective subsidy/ nonrival good b. tragedy of the commons/ cap and trade system/ socially optimal c. corrective subsidy/ corrective tax
For part B, blank options: a. does/ does not b. equal to/ larger than/ smaller than For part C, blank options: a. corrective tax/ corrective subsidy/ nonrival good b. tragedy of the commons/ cap and trade system/ socially optimal c. corrective subsidy/ corrective tax
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
For part B, blank options:
a. does/ does not
b. equal to/ larger than/ smaller than
For part C, blank options:
a. corrective tax/ corrective subsidy/ nonrival good
b. tragedy of the commons/ cap and trade system/ socially optimal
c. corrective subsidy/ corrective tax
![**Educational Content on Vaccine Subsidies and Public Shaming**
**b. Economic Efficiency and Vaccine Subsidies**
- From an efficiency perspective, subsidizing vaccines [may/would] make sense because without the subsidy, the equilibrium quantity is [less than] the socially optimal quantity.
**c. Public Shaming as a Corrective Measure**
- The school nurse suggests publishing a list of children who did not receive a flu vaccine to encourage vaccinations through public pressure. The school nurse hopes that public shaming would act like a [corrective tax/subsidy] and lead the market to a [more efficient/socially optimal] outcome.
- Social recognition, such as organizing a party for vaccinated children, could function as a [corrective subsidy/tax] to encourage more parents to vaccinate their children.
**d. Potential Flaws in Public Shaming Strategy**
- The school might risk legal action due to sharing protected health information (PHI), such as immunization records, without parental consent, potentially violating state regulations.
- Individuals who oppose vaccinations typically do so for medical or religious reasons and aren’t likely to be influenced by social norms or peer pressure.
- Parents of immunocompromised children may benefit from knowing which students are unvaccinated, allowing them to take measures to protect their children from potential exposure.
This text explains the economic rationale and potential societal impacts of vaccine policies, exploring both financial incentives and social strategies to improve public health outcomes.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba33ee2d-53ad-44ff-876f-ea0a29f5da0b%2Ffa8e9071-fa77-4a25-875a-1fc0d614ef02%2Flsyjrzx_processed.png&w=3840&q=75)
Transcribed Image Text:**Educational Content on Vaccine Subsidies and Public Shaming**
**b. Economic Efficiency and Vaccine Subsidies**
- From an efficiency perspective, subsidizing vaccines [may/would] make sense because without the subsidy, the equilibrium quantity is [less than] the socially optimal quantity.
**c. Public Shaming as a Corrective Measure**
- The school nurse suggests publishing a list of children who did not receive a flu vaccine to encourage vaccinations through public pressure. The school nurse hopes that public shaming would act like a [corrective tax/subsidy] and lead the market to a [more efficient/socially optimal] outcome.
- Social recognition, such as organizing a party for vaccinated children, could function as a [corrective subsidy/tax] to encourage more parents to vaccinate their children.
**d. Potential Flaws in Public Shaming Strategy**
- The school might risk legal action due to sharing protected health information (PHI), such as immunization records, without parental consent, potentially violating state regulations.
- Individuals who oppose vaccinations typically do so for medical or religious reasons and aren’t likely to be influenced by social norms or peer pressure.
- Parents of immunocompromised children may benefit from knowing which students are unvaccinated, allowing them to take measures to protect their children from potential exposure.
This text explains the economic rationale and potential societal impacts of vaccine policies, exploring both financial incentives and social strategies to improve public health outcomes.
Transcribed Image Text:**Externalities and Public Goods — End of Chapter Problem**
A local school administrator observes an increase in the number of flu cases in public schools over the last two years. She is concerned that some families cannot afford the flu vaccine and are therefore not having children vaccinated. She is also concerned that the failure to vaccinate some children is putting other children at risk, so she proposes that the state subsidize vaccines to increase coverage rates.
**a. Determine whether children getting a flu vaccine carries an external benefit or an external cost.**
- If an **external cost** is present, move point A and point B to show the marginal social cost curve.
- If an **external benefit** is present, move point A and point B to show the marginal social benefit curve.
- Place point C at the equilibrium outcome.
- Place point D at the socially optimal outcome.
**Graph Explanation:**
The graph features a supply and demand curve:
- The x-axis represents the quantity of flu vaccines, and the y-axis represents the price.
- The **Supply curve** is labeled as the marginal private cost.
- The **Demand curve** is labeled as the marginal private benefit.
Points A and B are horizontally aligned above the constant region of the marginal curves, suggesting either costs or benefits that aren't being fully accounted for at a private level. Point C lies where the initial supply and demand curves intersect, indicating the equilibrium outcome, while point D lies further out, indicating the socially optimal outcome where externalities are considered.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education