Suppose that a vaccine is developed for a highly contagious strain of flu.The likelihood that anyone will get this flu decreases as more people receive the vaccine.
-The dollar value of the external ______ is _____.
A) benefit;$30
B) benefit;$20
C) benefit;$75
D) cost;$20
E) cost;$75

Question

Suppose that a vaccine is developed for a highly contagious strain of flu.The likelihood that anyone will get this flu decreases as more people receive the vaccine. 
-The dollar value of the external ______ is _____.
A) benefit;$30 
B) benefit;$20 
C) benefit;$75 
D) cost;$20 
E) cost;$75

Quizplus · Accepted Answer

The sentence implies that there is a positive externality associated with receiving the vaccine, since the likelihood of others getting the flu decreases as more people receive it. The dollar value of this externality is given as $30. Therefore, the correct answer is A) benefit;$30.

Suppose That a Vaccine Is Developed for a Highly Contagious