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Edgar's Expected Private Benefit from the Flu Shot Is $15

Question 32

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.

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