The covariant formulation of quantum electrodynamics, developed in a previous paper, is here applied to two elementary problems-the polarization of the vacuum and the self-energies of the electron and photon. In the first section the vacuum of the non-interacting electromagnetic and matter fields is covariantly defined as that state for which the eigenvalue of an arbitrary time-like component of the energy-momentum four-vector is an absolute minimum. It is remarked that this definition must be compatible with the requirement that the vacuum expectation values of a physical quantity in various coordinate systems should be, not only covariantly related, but identical, since the vacuum has a significance that is independent of the coordinate system. In order to construct a suitable characterization of the vacuum state vector, a covariant decomposition of the field operators into positive and negative frequency components is introduced, and the properties of these associated fields developed. It is shown that the state vector for the electromagnetic vacuum is annihilated by the positive frequency part of the transverse four-vector potential, while that for the matter vacuum is annihilated by the positive frequency part of the Dirac spinor and of its charge conjugate. These defining properties of the vacuum state vector are employed in the calculation of the vacuum expectation values of quadratic field quantities, specifically the energy-momentum tensors of the independent electromagnetic and matter fields, and the current four-vector. It is inferred that the electromagnetic energy-momentum tensor, and the current vector must vanish in the vacuum, while the matter field energy-momentum tensor vanishes in the vacuum only by the addition of a suitable multiple of the unit tensor. The second section treats the induction of a current in the vacuum by an external electromagnetic field. It is supposed that the latter does not produce actual electron-positron pairs; that is, we consider only the phenomenon of virtual pair creation. This restriction is introduced by requiring that the establishment and subsequent removal of the external field produce no net change in state for the matter field. It is demonstrated, in a general manner, that the induced current at a given space-time point involves the external current in the vicinity of that point, and not the electromagnetic potentials. This gauge invariant result shows that a light wave, propagating at remote distances from its source, induces no current in the vacuum and is therefore undisturbed in its passage through space. The absence of a light quantum self-energy effect is thus indicated. The current induced at a point consists, more precisely, of two parts: a logarithmically divergent multiple of the external current at that point, which produces an unobservable renormalization of charge, and a more involved finite contribution, which is the physically significant induced current. The latter agrees with the results of previous investigations. The modification of the matter field properties arising from interaction with the vacuum fluctuations of the electromagnetic field is considered in the third section. The analysis is carried out with two alternative formulations, one employing the complete electromagnetic potential together with a supplementary condition, the other using the transverse potential, with the variables of the supplementary condition eliminated. It is noted that no real processes are produced by the first order coupling between the fields. Accordingly, alternative equations of motion for the state vector are constructed, from which the first order interaction term has been eliminated and replaced by the second order coupling which it generates. The latter includes the self action of individual particles and light quanta, the interaction of different particles, and a coupling between particles and light quanta which produces such effects as Compton scattering and two quantum pair annihilation. It is concluded from a comparison of the alternative procedures that, for the treatment of virtual light quantum processes, the separate consideration of longitudinal and transverse fields is an inadvisable complication. The light quantum self-energy term is shown to vanish, while that for a particle has the anticipated form for a change in proper mass, although the latter is logarithmically divergent, in agreement with previous calculations. To confirm the identification of the self-energy effect with a change in proper mass, it is shown that the result of removing this term from the state vector equation of motion is to alter the matter field equations of motion in the expected manner. It is verified, finally, that the energy and momentum modifications produced by self-interaction effects are entirely accounted for by the addition of the electromagnetic proper mass to the mechanical proper mass-an unobservable mass renormalization. An appendix is devoted to the construction of several invariant functions associated with the electromagnetic and matter fields.