A local school administrator observes an increase in the number of flu outbreaks in the public schools

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A local school administrator observes an increase in the number of flu outbreaks in the public schools over the last two years. She is concerned that this is putting other children at risk, so she proposes that the state should subsidize flu shots in order to increase coverage rates.

a. Are the administrator’s concerns valid—are too few children getting flu shots—and will a subsidy lead to a more socially optimal quantity? Draw a graph to help analyze this policy. 

b. The school nurse suggests publishing a list of which kids did not get a flu shot, in the hope that public shaming will lead people to vaccinate their children. Is this strategy likely to work? Why or why not?  

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