Suppose a government decides to subsidize flu vaccinations in an attempt to correct a market failure. Without this government intervention, the flu vaccination would most likely be ______ due to the presence of _______.

Question

Quizplus · Accepted Answer

Flu vaccinations are typically under-consumed due to the presence of positive externalities. When an individual gets vaccinated, they not only protect themselves but also reduce the likelihood of transmitting the flu to others, creating a benefit for society that the individual may not consider when deciding whether to get vaccinated.

Suppose a Government Decides to Subsidize Flu Vaccinations in an Attempt