Exam 13: The Environment, Health, and Safety

This graph illustrates the marginal cost,marginal private benefit,and marginal social benefit of immunization against a contagious childhood disease. One reason ____ children should be immunized is that

The amount of waste caused by full insurance coverage depends on

When state regulators require consumers to purchase and use a safety device,the regulation

When Dale visits the doctor,Dale does not pay for either the visit or any tests the doctor may order.Dale must therefore

The system of government insurance that pays benefits to workers injured on the job is referred to as

The growth of lawsuits seeking compensation from firms when a worker is injured should serve to

Suppose that there are three power-generating plants,all of which generate emissions.The table summarizes the cost of emission reduction for each firm given five different levels of pollution: Tons of smoke emitted per day 4 3 2 1 0 Total abatement cost, firm A 0 \ 14 \ 30 \ 50 \ 75 Total abatement cost, firm B 0 \ 20 \ 45 \ 80 \ 120 Total abatement cost, firm C 0 \ 25 \ 60 \ 100 \ 150 Suppose the government requires the three firms to reduce pollution to 2 tons of smoke per day,for a total of 6 tons.This will result in a total cost of __________.

Two firms can choose from five different technologies to reduce their pollution: A,B,C,D and E.The amount of pollution emitted by each technology and the cost of the technologies are shown in the table.Both firms have adopted technology A and currently emit 4 tons apiece.The government is considering two plans to reduce pollution: a 50% reduction by both firms or selling pollution permits.One permit entitles the owner to emit one ton of pollution.Without a permit,no pollution can be emitted. : : : : : 4 tons 3 tons 2 tons 1 ton no pollution Industrio \ 350 \ 400 \ 500 \ 700 \ 1000 Capitalista \ 225 \ 250 \ 290 \ 400 \ 600 Suppose a permit system has been adopted and each firm has already purchased one permit.Industrio would be willing to pay up to ___ for the right to discharge a second ton of pollution,and Capitalista would be willing to pay up to __ for the right to discharge a second ton of pollution.

The effect of widespread insurance covering routine medical care is to reduce the

Suppose that the marginal benefit of having a security camera in the library is given by MB,at the supermarket is given by MB₁ and at the museum is given by MB₂.All values are per week. An increase in crime would

A group of physicians that provide healthcare services to members for a fixed annual fee is termed a

Suppose a treacherous stretch of road winds through Deadman's Canyon for 5 miles.A highway department study estimates that better lighting would reduce the traffic fatality rates as follows: Number of lights Estimated deaths per year Total installation cost (in millions) 0 3 \ 0 1 2 \ 3 2 1.5 \ 7 3 1.2 \ 12 4 1 \ 18 5 0.9 \ 25 Suppose that experts have estimated the statistical value of a life saved to be $8m.The marginal benefit of the third light installed is ____ and the marginal cost is ____.Therefore the third light ____ be installed.

Your state is considering enacting a law requiring that all motorcycle operators and their passengers wear a helmet.Motorcyclists vary in the degree to which they value being able to ride helmet-less and in the extent to which they value the safety provided by a helmet. The regulation requiring helmets is more likely to enhance efficiency when

Two firms can use five different technologies to produce the same quantity of output: 1,2,3,4 and 5.The first technology is the cheapest,but also the dirtiest.The fifth technology is the most expensive,but results in the lowest levels of pollution.The amount of pollution emitted by each firm and the cost of the technologies are shown in the table. Technology 1 2 3 4 5 Emissions 10 tons 8 tons 6 tons 4 tons 2 tons Acme's Costs \ 750 \ 800 \ 1000 \ 1400 \ 2000 FirmCo's Costs \ 500 \ 700 \ 1200 \ 2200 \ 4000 In the absence of either government regulation or private negotiation,the 2 firms will produce using technology __________ and pollution will be __________.

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

Suppose a treacherous stretch of road winds through Deadman's Canyon for 5 miles.A highway department study estimates that better lighting would reduce the traffic fatality rates as follows: Number of lights Estimated deaths per year Total installation cost (in millions) 0 3 \ 0 1 2 \ 3 2 1.5 \ 7 3 1.2 \ 12 4 1 \ 18 5 0.9 \ 25 Highway engineers have identified one level area in which one light could be located,but due to the rough terrain installation in additional locations is increasingly costly as more light locations are added.The highway department

Suppose that the marginal benefit of having a security camera in the library is given by MB,at the supermarket is given by MB₁ and at the museum is given by MB₂.All values are per week. The marginal cost of providing security cameras would shift from MC to MC₁ if

Suppose Marion and Gab must both choose between two jobs,a safe job that pays $250/week and a risky job that pays $300/week.The value of safety to each is $75/week.Each also values having a higher income than the other at $75/week.Having the same job (income)as the other means no change in satisfaction.The following payoff matrix shows the income (satisfaction)each would get based on the other decision. Marion Gab Safe Job @ \2 50 Risky Job @ \3 00 Safe Job @ \2 50 Gab: \3 25 Marion: \3 25 Gab: \3 25 Marion: \3 75 Risky Job @ \3 00 Gab: \3 75 Marion: \3 25 Gab: \3 00 Marion: \3 00 When Marion chooses the safe job,Gab will get more satisfaction by choosing the ____ and when Marion chooses the risky job,Gab will get more satisfaction by choosing the _____.

To achieve the socially optimal workplace injury rate,

One difficulty with the exploitation view of workplace injuries is for it to be successful over time,firms must