Figure 11.12 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 11.12.
-Refer to Figure 11.12.What is the value of the net gain to society as a result of subsidising chicken pox vaccinations?

Question

Figure 11.12  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 11.12.
-Refer to Figure 11.12.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 as a result of subsidizing chicken pox vaccinations is equal to the area of FEG, which represents the difference between the social benefit (SB) and the private benefit (PB) of each unit of vaccination. This value is not dependent on any specific quantity of vaccinations and can be determined from the graph. Choices A and B involve complex formulas that are not necessary to calculate the net gain to society in this case. Choice D is incorrect as it includes the area of the deadweight loss triangle, which represents the loss of welfare caused by market inefficiencies and is not part of the net gain to society from vaccination subsidies.

Figure 1112 Chicken Pox Vaccinations for Toddlers Benefit Society by by Protecting