ECONOMICS
FISCAL POLICY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Air pollution from factories
|
|
|
Eminent domain
|
|
|
Allowing people to smoke on school campuses
|
|
|
A student getting immunizations in order to go to school
|
Detailed explanation-1: -The positive externality provided by vaccinated individuals, in sufficient numbers, can lead to free-riding by unvaccinated individuals. However, that rationale breaks down if the positive benefits of vaccination are excludable owing to technology or institutional arrangements.
Detailed explanation-2: -One example of a positive externality is the market for education. The more education a person receives, the greater the social benefit since more educated people tend to be more enterprising, meaning they bring greater economic value to their community.
Detailed explanation-3: -A positive externality is when the consumption of a good has a positive effect or external value on society Example: Flu shots. When people get vaccinated, other people that did not pay for the flu shots also get a benefit because they have a lower chance of getting the flu.
Detailed explanation-4: -Advertising. When McDonalds, Walmart, or some other big firm advertises, it solves a market failure. Education. The procurement of any form of education has the potential to benefit a third party. Insurance. Local Investment. Vaccinations / Personal Hygiene.