Question

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?

Answer 1

assuming that this flu is contagious in nature,and if Sahar is being vaccinated then the all other lecturers should get themselves vaccinated to prevent the students from the adverse impact caused by the flu.

first question-

IMPACT ON STUDENT-

if the lecturers won't get the vaccination done,then there are chances that there students can get affected by the flu.therefore in this way the students are under risk of spreading the disease.

second question-

MARKET FAILURE-

it may be considered as negative externality.if the lecturers won't get themselves treated then the students can get the infection and as a result the parents of students can also get the infection.therefore the decision of a person not to get the vaccination is affecting a large scale of population.

third question-

GOVERNMENT ROLE-

• government can play an important role,government can make it compulsory to get a periodical vaccination which can prevent the people from getting sick.
• government may introduce some paid benefit where a person should not be suffer any pay cut during there vaccination and treatment and also can set some reward for the completion of periodic check-ups.
• government can set a responsibility of the school/organization to deal with such situation and in case of any incident the organization would be answerable.

fourth question-

LIMITATION OF GOVERNMENT INTERVENTION-

• if government is paying any monetary or financial help then there is a huge chance of misuse of the policy.
• by making the third party answerable this would create additional burden over the organization.they won't indeed like the intervention of the government.