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Economics (AS & A Level) · May / June 2024 · Paper 31 · Question 3

9708Private costs and benefits, externalities and social costs and benefits

A medical team provides vaccinations for children to prevent an outbreak of an infectious disease. Why would this be described as a positive externality?

  1. AAdditional benefit might be gained as the disease no longer spreads.
  2. BAny kind of medical help will improve the condition of the children.
  3. CNo action would be taken unless the medical team intervened.
  4. DThe social benefits of vaccination are less than the social costs.

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Correct answer: A. Additional benefit might be gained as the disease no longer spreads.

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