Figure 15-10 Chicken pox vaccinations for toddlers benefit society by protecting young children and by preventing an epidemic of the disease.Thus,the social benefits of chicken pox vaccinations exceed the private benefit for any quantity of vaccinations as illustrated in Figure 15-10.
-Refer to Figure 15-10.What is the value of the net gain to society as a result of subsidising chicken pox vaccinations?

Question

Figure 15-10  Chicken pox vaccinations for toddlers benefit society by protecting young children and by preventing an epidemic of the disease.Thus,the social benefits of chicken pox vaccinations exceed the private benefit for any quantity of vaccinations as illustrated in Figure 15-10.
-Refer to Figure 15-10.What is the value of the net gain to society as a result of subsidising chicken pox vaccinations?

Quizplus · Accepted Answer

The net gain to society is represented by the area of the triangle FEG (which is the social benefit minus the private benefit). Therefore, the correct choice is C, which states that the value is equal to the area of FEG. The other choices involve multiplying different terms that are not relevant to finding the net gain to society.

Figure 15-10 Chicken Pox Vaccinations for Toddlers Benefit Society