Question

In: Economics

Sahar is a lecturer of a large class of economics students. Sahar can’t stand being ill...

Sahar is a lecturer of a large class of economics students. Sahar can’t stand being ill and so decides to get a flu vaccination. On the other hand, some of Sahar’s colleagues decide to skip their vaccinations because they are too busy. Do the lecturers’ decisions on whether or not to get vaccinated affect their students and if so how? Describe any market failures that arise from this situation. Describe how the government can address any of these market failures. What are some of the potential downsides to government intervention in this case?

Solutions

Expert Solution

Vaccination is an example of positive externality because it has spillover effects in the economy and marginal social benefit associated with vaccination is more than marginal private benefit of vaccination. If the lecturer gets vaccinated then others will also get vaccinated because it will reduce their risk from getting the vaccine. This positive spillover effect makes vaccination a positive externality.

Yes, this is an example of market failure because number of people who will get vaccination is less than optimal number of people who should be vaccinated because it is an example of positive externality.

Government can address the market failure by subsidizing the cost of the firm providing vaccination which will reduce their overall cost and shift the supply curve of vaccine rightwards by increasing vaccination supply and thus increasing number of people who get vaccinated to the socially optimal level. However, it might lead to increase in budget deficit of the government because no revenue is earned in return.


Related Solutions

Sahar is a lecturer of a large class of economics students. Sahar can’t stand being ill...
Sahar is a lecturer of a large class of economics students. Sahar can’t stand being ill and so decides to get a flu vaccination. On the other hand, some of Sahar’s colleagues decide to skip their vaccinations because they are too busy. Do the lecturers’ decisions on whether or not to get vaccinated affect their students and if so how? Describe any market failures that arise from this situation. Describe how the government can address any of these market failures....
Sahar is a lecturer of a large class of economics students. Sahar can’t stand being ill...
Sahar is a lecturer of a large class of economics students. Sahar can’t stand being ill and so decides to get a flu vaccination. On the other hand, some of Sahar’s colleagues decide to skip their vaccinations because they are too busy. Do the lecturers’ decisions on whether or not to get vaccinated affect their students and if so how? Describe any market failures that arise from this situation. Describe how the government can address any of these market failures....
Sahar is a lecturer of a large class of economics students. Sahar can’t stand being ill...
Sahar is a lecturer of a large class of economics students. Sahar can’t stand being ill and so decides to get a flu vaccination. On the other hand, some of Sahar’s colleagues decide to skip their vaccinations because they are too busy. Do the lecturers’ decisions on whether or not to get vaccinated affect their students and if so how? Describe any market failures that arise from this situation. Describe how the government can address any of these market failures....
Sahar is a lecturer of a large class of economics students. Sahar can’t stand being ill...
Sahar is a lecturer of a large class of economics students. Sahar can’t stand being ill and so decides to get a flu vaccination. On the other hand, some of Sahar’s colleagues decide to skip their vaccinations because they are too busy. Do the lecturers’ decisions on whether or not to get vaccinated affect their students and if so how? Describe any market failures that arise from this situation. Describe how the government can address any of these market failures....
Suppose that a lecturer gives a 10-point quiz to a class of five students. The results...
Suppose that a lecturer gives a 10-point quiz to a class of five students. The results of the quiz are 3, 1, 5, 9, and 7. For simplicity, assume that the five students are the population. Assume that all samples of size 2 are taken with replacement and the mean of each sample is found. Questions: Calculate the population mean and standard deviation Suppose that you obtain at least 20 random samples of size 2. From data obtained by you,...
Being students of business and economics, you should be familiar with the concepts of capitalism and...
Being students of business and economics, you should be familiar with the concepts of capitalism and socialism, or generally speaking, command and market-based economies. What would like you to do is list 2 benefits and 2 drawbacks to each system, and then briefly explain why examples of pure socialism and pure capitalism tend to be more theoretical in nature and less likely to be found in reality. In order to receive full credit on this discussion board, you will also...
At a large university, freshmen students are required to take an introduction to writing class. Students...
At a large university, freshmen students are required to take an introduction to writing class. Students are given a survey on their attitudes towards writing at the beginning and end of class. Each student receives a score between 0 and 100 (the higher the score, the more favorable the attitude toward writing). The scores of nine different students from the beginning and end of class are shown below. Use the Wilcoxon signed-rank test to check at a 5% significance level...
A: You recently took a statistics class in a large class with n = 500 students....
A: You recently took a statistics class in a large class with n = 500 students. The instructor tells the class that the scores were Normally distributed, with a mean of 7 2 (out of 100 ) and a standard deviation of 8 , but when you talk to other students in the class, you find out that more than 30 students have scores below 45 . That violates which rule for the Normal distribution? the 30–60–90 rule the 1–2–3...
A professor was curious as to whether the students in a very large class she was...
A professor was curious as to whether the students in a very large class she was teaching, who turned in their tests first, scored differently from the class mean on the test. The μ on the test was 75 with σ = 10; the scores were approximately normally distributed. The mean score for the first 20 tests was 78. Did the students turning in their tests first score significantly different from the larger mean at the .05 level? a) Use...
QUESTION 2 Fifty students are enrolled in an Economics class. After the first examination, a random...
QUESTION 2 Fifty students are enrolled in an Economics class. After the first examination, a random sample of 5 papers was selected. The grades were 65, 73, 80, 72, and 95 a. Calculate the estimate of the standard error of the mean. b. What assumption must be made before we can determine an interval for the mean grade of all the students in the class? Explain why. c. Assume the assumption of Part b is met. Provide a 90% confidence...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT