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Chapter 5: Q 19 (page 122)

Consider panel (b) of Figure. Assume that a careful study of the likely transmission of influenza in light of a changed population distribution has revealed that the external benefits from inoculations are greater than currently displayed in the graph. In light of this information, is the under allocation of resources to the provision of flu-vaccine inoculations larger or smaller than indicated in panel (b)?

Short Answer

Expert verified

The under allocation of resources to the provision of flu-vaccine inoculations is smaller than indicated in panel (b).

Step by step solution

01

Step 1. Given Information.

The graph for the transmission of influenza is,

02

Step 2. Reason.

The under allocation of resources to the provision of flu-vaccine inoculations is smaller than indicated in panel (b). The external benefits from inoculations are greater than shown in the graph and it would indicate that an under allocation will be smaller.

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