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Figure: External Benefit
-(Figure: External Benefit) Refer to the figure. Shingles is a painful and blistering skin rash that generally affects older adults. The shingles virus is transmitted by those with an active outbreak, and it can cause chicken pox in people who never had it. In this figure depicting the market for shingles vaccinations, what is the external benefit of a shingles vaccine?
A) $4
B) $10
C) $5
D) $7

Question

Use the following to answer questions:
Figure: External Benefit 
-(Figure: External Benefit) Refer to the figure. Shingles is a painful and blistering skin rash that generally affects older adults. The shingles virus is transmitted by those with an active outbreak, and it can cause chicken pox in people who never had it. In this figure depicting the market for shingles vaccinations, what is the external benefit of a shingles vaccine?
A) $4 
B) $10 
C) $5 
D) $7

Quizplus · Accepted Answer

The external benefit of a shingles vaccine is the benefit that accrues to people who are not vaccinated. In this case, the external benefit is the reduced risk of chicken pox in people who never had it. The external benefit is $4, which is the difference between the cost of the vaccine ($6) and the benefit to the unvaccinated person ($10).

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