Watch the following video, Externalities and Incentives: The Economics of COVID and then answer the questions below:

1. Why is a flu shot an example of a positive externality?
2. Since the number of people getting flu shots will be lower than the socially optimal number of flu shots, what are two ways to increase the number of people getting flu shots?
3. How is coronavirus vaccine development an example of a positive externality?
4. Given that without some type of intervention, vaccine development would also be underprovided, what are some possible solutions to encourage vaccine development?