Author Question: When parents inoculate their children from communicable diseases prior to sending them off to school ... (Read 32 times)

NguyenJ · **on:** Jun 29, 2018

When parents inoculate their children from communicable diseases prior to sending them off to school they not only provide their own children a benefit but also bestow a benefit on every other student at the school.

There are now fewer students who can pass on these types of diseases. However, parents are not likely to take into account the fact that their actions create this external benefit. Therefore, economists argue that the market on its own may not provide for the optimal level of inoculations. What methods might work to get parents to take into account the external benefit when deciding whether to inoculate their children?

Question 2

If real GDP per capita measured in 2009 dollars was 6,000 in 1950 and 48,000 in 2016, we would say that in the year 2016, the average American could buy ________ times as many goods and services as the average American in 1950.

A) 1/8 B) 4 C) 8 D) 12

shoemake · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

One possibility would be for the government to subsidize the inoculations or otherwise provide some kind of tax credit for doing so.

Answer to Question 2

C