#9. A safe and effective coronavirus vaccine has positive externalities. Is it efficient for the government toprovide this vaccine to everyone for free?a. Yes. Goods with positive externalities should always be free.b. Uncertain. Goods with positive externalities should be subsidized, but making them free is not necessarilyefficient.c. No. According to the First Fundamental Welfare Theorem, the market will provide the efficient amount ofvaccines on its own.с.d. No. Goods with positive externalities should be taxed.

Externality: - it is a cost or benefit generated for the third party by the actions of other people.

Answered: %#9. A safe and effective coronavirus…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Historically, Vaccinations have prevented the spread of certain diseases such as chicken pox or megningtis. What type of externality takes place with the consumption of such vaccines. Explain with words and a graph.
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