For each of the following policies, explain whether the policy is correcting a market failure or pursuing some other societal goal. Be sure to…

A4-9. For each of the following policies, explain whether the policy is correcting a market failure or pursuing some other societal goal. Be sure to identify the goal. Using diagrams where possible, describe the efficiency impact of the policy. To simplify your analysis, assume that the marginal private cost (MPC = willingness-to-accept) is constant and ignore the efficiency costs of taxation (where applicable).
A) Since flu vaccinations not only benefit the vaccinated (decreasing their chance of getting the flu),but also benefit everyone else in the same way, the Ontario government funds flu shots from taxation and distributes them for free to the population. [6]
B)Many governments have banned smoking in restaurants because they are worried about the effects of secondhand smoke on the health of non-smoking diners. [6]
C) The Canadian government has made many medical/health-related transactions illegal(ex.tradein body organs, payments for pregnancy surrogates, etc.). [6]
D) In Canada, healthcare(even for non-communicable diseases)is provided by the government and funded through progressive taxation. [6]

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