Figure 5-6
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 5-6.
-Refer to Figure 5-6.What is the value of the net gain to society as a result of subsidizing chicken pox vaccinations?

Question

Figure 5-6 
 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 5-6.
-Refer to Figure 5-6.What is the value of the net gain to society as a result of subsidizing chicken pox vaccinations?

Quizplus · Accepted Answer

The net gain to society as a result of subsidizing chicken pox vaccinations is equal to the social benefit minus the cost. The value of the net gain to society can be represented by the area of the triangle FEG, which is equal to (PF-PB) x QE/2. This represents the difference between the social benefit (PF) and the private cost (PB) multiplied by the quantity of vaccinations (QE) and divided by 2. Therefore, the answer is C, value equal to the area of FEG.

Figure 5-6 Chicken Pox Vaccinations for Toddlers Benefit Society by Protecting