Vaccination against a disease helps in preventing the spread of the disease. Which of the following can help in increasing the number of people vaccinated to the socially optimal level?
A) A corrective tax
B) An income tax
C) A life insurance
D) A health tax
Question 2
Which of the following is true?
A) If consumption of a good gives rise to a positive externality, it can be internalized by taxing the producers of the good.
B) If production of a good gives rise to a negative externality, it can be internalized by taxing the producers of the good.
C) If production of a good gives rise to a positive externality, it can be internalized by taxing the consumers of the good.
D) If consumption of a good gives rise to a negative externality, it can be internalized by subsidizing the purchase of the good.