Question

All children have to be immunized against polio, measles, mumps, and other diseases. This, however, is not true of the chicken pox vaccine. If you don't have enough money to pay for the vaccination from your pediatrician, they will be provided free at the local hospital. Which economic principle does this statement BEST represent?

A. Government policies can change spending.

B. Resources should be used efficiently to achieve society's goals.

C People usually respond to incentives, exploiting opportunities to make themselves better off.

D When markets don't achieve efficiency, government intervention can improve society's welfare.

Answer 1