The willingness of citizens to pay for vaccinations does not include the benefit society receives from having vaccinated citizens who cannot transmit an illness to others. This extra benefit society gets from vaccinating its citizens is known as
A)productivity.
B)an externality.
C)market power.
D)property rights.

Question

Quizplus · Accepted Answer

An externality refers to a benefit or cost that affects someone who did not choose to incur that benefit or cost. In this case, the extra benefit society receives from vaccinations (reduced transmission of illnesses) is a positive externality, as it benefits people other than those who decided to get vaccinated.

The Willingness of Citizens to Pay for Vaccinations Does Not