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 from subsidizing chicken pox vaccinations can be determined by finding the difference between the total value of benefits to society and the total cost of providing the vaccinations. This difference can be represented by the area of the triangle FEG, which is equal to (PF-PB) x QF/2. Therefore, the correct answer is C: value equal to the area of FEG.

Figure 11-12 Chicken Pox Vaccinations for Toddlers Benefit Society