Which of the following is the best example of a health-care service with a large public good component?
A) a hair-growing treatment provided to a twenty-five year-old single man
B) heart bypass surgery provided to an employee and paid for by employer-funded insurance
C) a vaccine that reduces the incidence of a communicable disease
D) a hip replacement provided to a senior citizen

Question

Quizplus · Accepted Answer

A vaccine that reduces the incidence of a communicable disease is the best example of a health-care service with a large public good component because it not only benefits the individual who receives the vaccine but also helps to prevent the spread of the disease to others. This creates a positive externality or spillover effect, where the benefits of the vaccination extend beyond the person who receives it, making it a public good. The other choices are not characteristic of public goods and do not have a significant positive spillover effect.

Which of the Following Is the Best Example of a Health-Care