Figure 5-10 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 5-10.
-Refer to Figure 5-10.What is the value of the net gain to society as a result of subsidizing chicken pox vaccinations?

Question

Figure 5-10  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 5-10.
-Refer to Figure 5-10.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 value of the area FEG, which represents the difference between the social benefit (SB) and the private benefit (PB). This is because the social benefits exceed the private benefits for any quantity of vaccinations. Therefore, the correct answer is C.

Figure 5-10 Chicken Pox Vaccinations for Toddlers Benefit Society