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- Individuals go for flu injection not only protect themselves against flu but also help to prevent the disease from spreading in the community. (a) What type of externality occurs in the flu injection market? (b) Is the market outcome efficient? (c) What can the government do to rectify the externality issue?An externality occurs in a market when Oa third party is impacted by a market activity Oexternal factors cause a market's price to rise Othe government regulates a market Onatural disasters negatively impact a marketWhen externalities cause markets to be inefficient (x) government action is sometimes needed to solve the problem. (y) private solutions can be developed to solve the problem. (z) there is a way to eliminate the problem of externalities in the market if producers are provided with the appropriate incentives to internalize the externality. Select one or more: a. (x), (y) and (z) b. (x) and (y) only c. (x) and (z) only d. (y) and (z) only e. (z) only
- The socially optimal outcome is the outcome that: Select one: a. has the most externalities. b. is most efficient for society as a whole, including for buyers, sellers, and bystanders. c. has the most benefits for society as a whole, regardless of the costs involved. d. benefits the largest number of people.dont use chatgpt answer urgent In a situation where an externality occurs, the "third party" refers to those who a) buy the product from others. b) produce the product for others. c) trade the product with others outside the nation or community. d) are not directly involved in the transaction or activity.draw a graph of a product without any externality
- Production Costs inflicted upon a third party are negative externalities. These can be corrected b Enacting legislation or regulation Targeting specific products for taxation both neitherIf the market for a good is producing a negative externality in production (e.g. a polluting firm):(a) In market equilibrium, the marginal cost (MC) to society exceeds the marginal cost (MC) of production.b) In market equilibrium the marginal benefits to society exceed the marginal cost (MC) of production.(c) In market equilibrium the marginal costs (MC) to society exceed the total benefits to societyd) In market equilibrium the private Cmg (MC) of production exceeds the Cmg (MC) for society.For each of the alternatives, explain which is correct and explain which are false or uncertain.The term refers to a market exchange that affects a third party who is outside or external to the exchange. spillover social costs market failure private costs
