Multiple Choice
Which statement is TRUE?
A) The Coase theorem suggests that the efficient equilibrium quantity of flu shots will maximize the sum of producer and consumer surplus.
B) It is easy to internalize the benefits of getting a flu shot because only two companies produce flu vaccines.
C) The market for flu shots could be efficient if the beneficiaries of the external benefits sufficiently compensated those receiving the shot.
D) To internalize the costs of getting a flu shot, people who receive the vaccine should pay other people to be vaccinated.
Correct Answer:

Verified
Correct Answer:
Verified
Q110: As bees make honey, they pollinate fruits
Q111: The efficient equilibrium maximizes private surplus.
Q112: Use the following to answer questions:<br>Figure: ABC
Q113: Use the following to answer questions:<br>Figure: External
Q114: Which policy does the economics of externalities
Q116: Which statement is INCORRECT?<br>A) When external benefits
Q117: In the case of an external benefit,
Q118: When patients or farmers choose whether to
Q119: Use the following to answer questions:<br>Figure: ABC
Q120: Government solutions to externality problems include:<br>I. Pigouvian