Refer to Figure 5-10. What is the value of the net gain to society as a result of subsidizing chicken pox vaccinations?
A) value equal to the area of FEG B) (PE × QE)
C) value equal to the area of QFFGQE D) (PF × QF)
A
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Social costs of a good are equal to
A) external costs minus private costs. B) private costs minus external costs. C) private costs plus external costs. D) external costs divided by the private costs.
Refer to the given data, symbols, and assumptions. Migration of workers will:
Symbols: Q = number of workers demanded; W = wage rate; and VTP = value of the
cumulative total product (output) of the particular number of workers.
Assumptions: (1) The current wage in Zinnia is $20 and the current wage in Marigold is $12; (2) full employment exists in both countries.
A. increase the combined value of total product but reduce the wage in Zinnia.
B. increase the combined value of total product but reduce the wage in Marigold.
C. reduce the combined value of total product but increase the wage in Marigold.
D. reduce the combined value of total product but increase the wage in Zinnia.