For part B, blank options:a. does/ does notb. equal to/ larger than/ smaller thanFor part C, blank options:a. corrective tax/ corrective subsidy/ nonrival goodb. tragedy of the commons/ cap and trade system/ socially optimalc. corrective subsidy/ corrective tax ΣOb. From an efficiency perspective, subsidizing vaccinesequilibrium quantity ismake sense because without the subsidy, thethe socially optimal quantity.The school nurse suggests publishing a list of which kids did not get a flu vaccine, in the hope that public shaming will leadpeople to vaccinate their children.c. The school nurse is hoping that public shaming would act like acorrective subsidycorrective taxand lead the market to aoutcome. Social recognition, such as a party for vaccinated children, could function as ato encourage more parents to vaccinate their children.d. What flaws might the school nurse's suggestion have? Select all that apply.The school would potentially face a lawsuit because sharing protected health information (PHI), like immunizationrecords, without parents' consent could be a violation depending on regulations of the state.People that feel passionate about not vaccinating are typically doing so for medical or religious reasons and will notsway to social norms or peer pressure.Parents with immunocompromised children will know which students are not vaccinated and can take precautions tokeep their kids safer by knowing if a student in their child's class is a potential carrier. Macmillan LearningExternalities and Public Goods End of Chapter ProblemA local school administrator observes an increase in the number of flu cases in the public schools over the last two years. She isconcerned that some families cannot afford flu vaccine and are therefore not having children vaccinated. She is also concernedthat the failure to vaccinate some children is putting other children at risk, so she proposes that the state subsidize vaccines toincrease 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.PriceFlu vaccinesQuantityBCSupply (marginal private cost)Demand (marginal private benefit)

Vaccination is an example of positive externality. Positive Externality in case of public goods:…

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

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 4PA

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A local school administrator is concerned that flu outbreaks are putting children at risk, so she proposes that the state should subsidize flu shots in order to increase coverage rates. -Are the administrator’s concerns valid—are too few children getting flu shots—and will a subsidy help? -The school nurse suggests publishing a list of which kids did not get a flu shot, in the hope that public shaming will lead people to vaccinate their children. Is this strategy likely to work?
Ali Receives Utility From (D)omestic Vaccines from Kayseri, and the Sinovac Vaccine-(F)oreign. The utility structure is U(D,F)=D x F. The price of the foreign vaccine because of increasing returns to scale is $200, whereas at its earlier stages, the domestic vaccine is produced at a higher cost, and higher price of $250. The government has given each and every citizen a fixed payment of $8000 to spend just on vaccines, but it has not specified which vaccines. a- Does Ali Solve the Utility Maximization Question in an interior equilibrium or a corner solution? How do you know? What condition does the interior equilibrium necessitate regardless. b- Find Ali's Utility Maximizing Level of Domestic and Foreign Vaccines when he uses just the government allowance on vaccines? What is his utility level? C- Suppose the government wants to decrease Turkey's health exports. It pushes a vaccine subsidy, just for domestic vaccines that makes the price of domestic equal to $160. How does the utility…
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