Exam 13: The Environment, Health, and Safety

The figure below shows Ava's demand curve for days in the hospital. The marginal cost of an additional day in the hospital is $200. If Ava had to pay the entire marginal cost of spending a day in the hospital, then she would choose to stay ______ day(s).

If workers' compensation premiums reflected the full social cost of the injuries sustained by each employer's workers, then this would lead to:

The figure below shows the marginal benefit of having a security camera at the library (MB_L), the supermarket (MB_S), and the museum (MB_M). The marginal cost of hiring a security guard is the same at all three places and is given by MC. If each location installs the socially optimal number of security cameras, then the marginal benefit of the last security camera installed at each location will be:

Which argument against enacting workplace safety regulations can be justified using economic tools or observation?

Workers' compensation is:

The growth of medical insurance in general and first-dollar coverage specifically has reduced the marginal cost of treatment to the consumer. Therefore, the current level of medical treatment in the United States is:

School districts in which relatively more parents choose to not have their children immunized:

Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each. Process A B C D E (smoke/day) (4 tons/day) (3 tons/day) (2 tons/day) (1 ton/day) (0 tons/day) Cost to Firm X(\ / day) \ 500 \ 514 \ 530 \ 555 \ 585 Cost to Firm Y ( \/ day) \ 400 \ 420 \ 445 \ 480 \ 520 Cost to Firm Z( \/ day) \ 300 \ 325 \ 360 \ 400 \ 550 It would cost Firm X ______ to reduce emissions by one ton if it currently emits 3 tons, and ______ to reduce emissions by one ton if it currently emits 2 tons.

Suppose the figure below shows Annie's demand curve for physical therapy. The marginal cost of each visit to the physical therapist is $150. Relative to when Annie has to pay the entire marginal cost of each visit, the loss of total economic surplus due to first-dollar medical insurance would be ______ per year.

According to the textbook, the reason the government requires safety seats for infants who travel in cars but not for infants who travel in airplanes is that:

If workers' compensation premiums reflected the full social cost of the injuries sustained by each employer's workers, then:

Two firms, Industrio and Capitalista, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below. Both firms currently use process A, and each emits 4 tons of smoke per day. The government is considering two plans to reduce pollution: requiring both firms to reduce pollution by 25 percent or auctioning pollution permits. Each permit would entitle the owner to emit one ton of smoke per day. Without a permit, no smoke can be emitted. A B C D E Process (smoke/day) (4 tons/day) (3 tons/day) (2 tons/day) (1 tons/day) Cost to Industrio ( \/ day) \ 350 \ 400 \ 500 \ 700 \ 1,000 Cost to Capitalista ( \/ day) \ 225 \ 250 \ 290 \ 400 \6 00 Given that both firms are currently using process A, the cost of requiring the firms to reduce pollution by 25 percent is ______ per day.

According to the textbook, the percentage of gross domestic product devoted to healthcare between the years 1940 and 2013:

The primary advantage to selling pollution permits rather than using a fixed percent reduction for all firms is that:

Suppose that all workers value a safe job $2,000 per year more than a risky job. The cost to firms of providing a safe job is $700 per year for each worker. Firms currently pay workers $35,000 per year, without any effort to improve safety. If new firms began to offer workers $34,000 per year and safe jobs, then the total cost of hiring a worker would be ______ at the new firms and ______ at the existing firms.

Suppose the figure below shows Annie's demand curve for physical therapy. The marginal cost of each visit to the physical therapist is $150. If Annie had to pay the entire marginal cost of each visit to the physical therapist, then she would choose to have ­______ visits a year.

When Cody went to the physician with a sore elbow, after hearing Cody's symptoms and examining the elbow manually, Cody's physician had two options: (1) prescribe an anti-inflammatory drug and advise Cody to abstain from vigorous physical activity for a period; or (2) advise Cody to undergo a magnetic resonance imaging (MRI) exam, a costly diagnostic procedure. Which of the following physicians is more likely to recommend option 2?

The greater the degree of labor market mobility, the

Insurance that pays all expenses generated by the insured activity is known as:

The Federal Aviation Administration requires large commercial jets to install more safety equipment than small private planes. This policy is consistent with the Cost-Benefit Principle because: