Answer to Question #190251 in Macroeconomics for James

Question

QUESTION 9

Why will flu shots go under produced and under consumed?

1. Because the marketplace does not recognize the positive externality.
2. Because the marketplace fights over the positive externality.
3. Because the flu has been eradicated.
4. Because the polio vaccine was successful.
5. Because I told them to.

QUESTION 10

New knowledge often becomes a:

1. Bad headache.
2. Hang-over effect.
3. Public good.
4. Club good.
5. Environmental disaster.

QUESTION 11

If there is no way for the company to fully enjoy the total benefits of innovation:

1. Then it will cease to exist.
2. Then it will borrow less than the socially optimal level.
3. Then it will borrow more than the socially optimal level.
4. All of the above.
5. None of the above.

Answer 1

9.Because the marketplace fights over the positive externality.

10.Public good

11.Then it will borrow more than the socially optimal level.