%#9. A safe and effective coronavirus vaccine has positive externalities. Is it efficient for the government to provide 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 necessarily efficient. c. No. According to the First Fundamental Welfare Theorem, the market will provide the efficient amount of vaccines on its own. d. No. Goods with positive externalities should be taxed.
%#9. A safe and effective coronavirus vaccine has positive externalities. Is it efficient for the government to provide 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 necessarily efficient. c. No. According to the First Fundamental Welfare Theorem, the market will provide the efficient amount of vaccines on its own. d. No. Goods with positive externalities should be taxed.
Chapter17: Market Failure: Externalities, Public Goods, And Asymmetric Information
Section: Chapter Questions
Problem 12QP
Related questions
Question
Transcribed Image Text:#9. A safe and effective coronavirus vaccine has positive externalities. Is it efficient for the government to
provide 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 necessarily
efficient.
c. No. According to the First Fundamental Welfare Theorem, the market will provide the efficient amount of
vaccines on its own.
с.
d. No. Goods with positive externalities should be taxed.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
