Question

_____ represent positive external benefits of a program to inoculate the population against contagious diseases.

a. The salaries paid to the workers

b. The payments to the vaccine manufacturers

c. The reduced probabilities of disease for those who are not vaccinated

d. Answers (a) and (c) are correct

e. The increased probabilities of disease for those who are not vaccinated

Answer 1

Positive external benefits will result when there are unaccounted benefits for which there is no payment made. This implies that the salaries paid will not be considered as an external benefit. it is actually the reduction in the possibility of getting the disease when people are vaccinated. There is an external benefit in the sense that those who are vaccinated are not becoming potential carriers of the disease and hence they are saving others from being infected.

Select option C