Multiple Choice
Edgar's expected private benefit from the flu shot is $15, and it would cost him $20 to get vaccinated. Therefore, which statement is correct?
A) It is socially optimal for Edgar to get the flu shot if the social benefits of the shot exceed $20.
B) The external benefits of the flu shot equal $5 ($20 - $15) .
C) Even without a government subsidy, Edgar is certain to be vaccinated.
D) The deadweight loss is eliminated if Edgar is vaccinated and the external benefits are $4.
Correct Answer:

Verified
Correct Answer:
Verified
Q27: Suppose Winston's loud music externalizes a cost
Q28: When the government intervenes in markets with
Q30: Figure: Negative Externality <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3377/.jpg" alt="Figure: Negative
Q31: Using a demand and supply diagram, demonstrate
Q33: An external cost is a cost paid
Q34: When external benefits are present in a
Q35: Command and control policies ensure economic efficiency.
Q36: The advantage of using command and control
Q37: Use the following to answer questions:<br>Exhibit: EPA
Q139: Government intervention is necessary to correct all