Figure 5-6

Figure 5-6 shows the market for measles vaccinations, a product whose use generates positive externalities.
-Refer to the Article Summary above.Assuming the findings are correct and all else equal, people who do not shop at Trader Joe's can still benefit from living near the store, as is shown by the higher home values.As a result, the marginal social benefit from living near a Trader Joe's is ________ the marginal private benefit to those who shop at Trader Joe's.

Question

Figure 5-6
  
Figure 5-6 shows the market for measles vaccinations, a product whose use generates positive externalities.
-Refer to the Article Summary above.Assuming the findings are correct and all else equal, people who do not shop at Trader Joe's can still benefit from living near the store, as is shown by the higher home values.As a result, the marginal social benefit from living near a Trader Joe's is ________ the marginal private benefit to those who shop at Trader Joe's.

Quizplus · Accepted Answer

The market for measles vaccinations generates positive externalities, meaning that the marginal social benefit exceeds the marginal private benefit. This means that individuals who do not get vaccinated still benefit from living in a community with high vaccination rates, as there is reduced risk of transmission of the disease. Therefore, the marginal social benefit is greater than the marginal private benefit, indicating choice B is the correct answer.

Figure 5-6 Figure 5-6 Shows the Market for Measles Vaccinations, a Product