A police department is trying to allocate crime control resources between murder and burglary.Detectives cost $40,000 each.Suppose that she marginal benefit of one less murder is $20,000 while the marginal benefit of one less burglary is $1,000.The number of murders and burglaries that occur at different levels of detective allocation is shown in the table. $\begin{array}{ccc} \begin{array}{c} \text { Number of } \\ \underline { \text { Detectives Assigned }} \end{array} & \begin{array}{c} \text { Number of } \\ \underline { \text { Murders }} \end{array} & \begin{array}{c} \text { Number of } \\ \underline { \text { Burglaries }} \end{array} \\ 0 & 20 & 100 \\ 1 & 16 & 60 \\ 2 & 13 & 30 \\ 3 & 11 & 10 \\ 4 & 10 & 0 \end{array}$ The marginal benefits of 1,2,3,and 4 detectives being assigned to murder prevention are

A) 4,3,2,and 1. B) $4,000,$3,000,$2,000,and $1,000. C) $16,000,$13,000,$11,000,and $10,000. D) $80,000,$60,000,$40,000,and $20,000. A) 4,3,2,and 1. B) $4,000,$3,000,$2,000,and $1,000. C) $16,000,$13,000,$11,000,and $10,000. D) $80,000,$60,000,$40,000,and $20,000.

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. $\begin{array}{c} \quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Marion }\\ \text { Gab } \begin{array}{|l|l|l|} \hline& \text { Safe Job @ \$250 } & \text { Risky Job @ \$300 } \\ \hline \text { Safe Job @ \$250 } & \begin{array}{l} \text { Gab: \$325 } \\ \text { Marion: \$325 } \end{array} & \text { Gab: \$325 } \\ & \text { Marion: \$375 } \\ \hline \text { Risky Job @ \$300 } & \begin{array}{l} \text { Gab: \$375 } \\ \text { Marion: \$325 } \end{array} & \begin{array}{l} \text { Gab: \$300 } \\ \text { Marion: \$300 } \end{array} \\ \hline \end{array}\end{array}$ Comparing the payoffs when both choose the risky job with the payoffs when both choose the safe job,

A) both would prefer the risky job outcome. B) both would prefer the safe job outcome. C) Gab prefers the risky job outcome while Marion prefers the safe job outcome. D) Marion prefers the risky job outcome while Gab prefers the safe job outcome. A) both would prefer the risky job outcome. B) both would prefer the safe job outcome. C) Gab prefers the risky job outcome while Marion prefers the safe job outcome. D) Marion prefers the risky job outcome while Gab prefers the safe job outcome.

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: \[\begin{array} { c c c } \text { Number of lights } & \text { Estimated deaths per year } & \text { Total installation cost (in millions) } \\ 0 & 3 & \$ 0 \mathrm {~m} \\ 1 & 2 & \$ 3 \mathrm {~m} \\ 2 & 1.5 & \$ 7 \mathrm {~m} \\ 3 & 1.2 & \$ 12 \mathrm {~m} \\ 4 & 1 & \$ 18 \mathrm {~m} \\ 5 & 0.9 & \$ 25 \mathrm {~m} \end{array}\] Applying economic analysis to determine expenditures on safety improvements that save lives

A) is impossible because it is impossible to place a dollar value on human life. B) assures that the most lives are saved at the lowest opportunity cost. C) biases life-saving expenditures in favor of high-technology safety improvements. D) would require that all resources be reallocated away from entertainment,education,and other non-safety uses to public safety agencies. A) is impossible because it is impossible to place a dollar value on human life. B) assures that the most lives are saved at the lowest opportunity cost. C) biases life-saving expenditures in favor of high-technology safety improvements. D) would require that all resources be reallocated away from entertainment,education,and other non-safety uses to public safety agencies.

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: \[\begin{array} { l l l l l r } \text { Tons of smoke emitted per day } & 4 & 3 & 2 & 1 & 0 \\ \text { Total abatement cost, firm A } & 0 & \$ 14 & \$ 30 & \$ 50 & \$ 75 \\ \text { Total abatement cost, firm B } & 0 & \$ 20 & \$ 45 & \$ 80 & \$ 120 \\ \text { Total abatement cost, firm C } & 0 & \$ 25 & \$ 60 & \$ 100 & \$ 150 \end{array}\] The least costly way of lowering smoke emissions from 12 tons to 9 tons would be for

A) each firm to reduce emissions by 1 ton,emitting 3 tons each. B) Firm A to emit 1 ton,and the other firms to emit 4 tons each. C) Firm A to emit 2 tons,Firm B to emit 4 tons and Firm C to emit 3 tons. D) Firm A to emit 0 tons;Firm B to emit 4.5 tons and Firm C to emit 4.5 tons. A) each firm to reduce emissions by 1 ton,emitting 3 tons each. B) Firm A to emit 1 ton,and the other firms to emit 4 tons each. C) Firm A to emit 2 tons,Firm B to emit 4 tons and Firm C to emit 3 tons. D) Firm A to emit 0 tons;Firm B to emit 4.5 tons and Firm C to emit 4.5 tons.

Exam 13: The Environment, Health, and Safety

A police department is trying to allocate crime control resources between murder and burglary.Detectives cost $40,000 each.Suppose that she marginal benefit of one less murder is $20,000 while the marginal benefit of one less burglary is $1,000.The number of murders and burglaries that occur at different levels of detective allocation is shown in the table. Number of Number of Number of 0 20 100 1 16 60 2 13 30 3 11 10 4 10 0 The marginal benefits of 1,2,3,and 4 detectives being assigned to murder prevention are

(Multiple Choice)

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Question 101

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

(Multiple Choice)

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Question 102

Suppose that a government agency is trying to decide between two pollution reduction policy options.Under the permit option,100 pollution permits would be sold,each allowing emission of one unit of pollution.Firms would be forced to shut down if they produced any units of pollution for which they did not hold a permit.Under the pollution tax option,firms would be taxed $250 for each unit of pollution produced.The regulated firms all currently pollute and face varying costs of pollution reduction,though all face increasing marginal costs of pollution reduction. Suppose the tax policy is adopted.A firm will be willing to pay the tax if $250 is less than or equal to

(Multiple Choice)

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Question 103

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 Comparing the payoffs when both choose the risky job with the payoffs when both choose the safe job,

(Multiple Choice)

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Question 104

In the absence of environmental protection laws,firms pollute because

(Multiple Choice)

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Question 105

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. Marginal Cost is given as MC.Suppose the only variable cost of a security camera is the wage of the person monitoring it.Suppose further that camera monitors demand equal wages,regardless of their location.If wages for all camera monitors are set at $T,

(Multiple Choice)

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Question 106

Pat has just graduated from college and has two job offers.One pays $45,000 and requires that Pat supervise employees doing construction work on a busy highway.The other is an office job that pays $40,000.Chris has received the same offers from the same firms.Pat values the added safety of the office job at $6,000 per year and Chris values the added safety of the office job at $3,000 per year. Suppose that the agency that regulates highway safety requires that the freeway construction firm provide additional safety precautions.After the changes,Chris places no additional value on working at the office,and Pat values the added safety of the office job by $2,000 per year.If the safety precautions cost the firm $3,000 per year and the freeway construction firm reduces salaries by $3,000 to $42,000

(Multiple Choice)

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Question 107

As fewer families choose to purchase medical insurance,

(Multiple Choice)

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Question 108

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 Applying economic analysis to determine expenditures on safety improvements that save lives

(Multiple Choice)

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Question 109

The most efficient distribution of pollution abatement among polluters is

(Multiple Choice)

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Question 110

Airlines used to allow infant children to ride on a parent's lap for free.Suppose that they start requiring that parents purchase an extra ticket for their infants and use a safety seat.It is likely this policy would result in

(Multiple Choice)

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Question 111

According to the textbook,Manning and his colleagues found that people with $1000-deductible policies spent _____ on health care relative to people with first-dollar coverage.

(Multiple Choice)

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Question 112

Compared to a fixed percentage reduction regulation,a tax on pollution encourages

(Multiple Choice)

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Question 113

Suppose that all workers value a 1% reduction in the workplace injury rate at $1,000.The cost of reducing the injury rate by 1% is $200 per worker.Firms currently pay $20,000 per year to workers,without any effort to improve safety. Suppose new firms began to offer workers $19,500 and a 1% reduction in the injury rate.The total benefit to workers of the existing firms' offer is and the benefit of the new firms' offer is .

(Multiple Choice)

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Question 114

This graph illustrates the marginal cost,marginal private benefit,and marginal social benefit of immunization against a contagious childhood disease. In this graph MB1 measures _ and MB2 measures __

(Multiple Choice)

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Question 115

If the marginal costs of pollution abatement are different across firms,then regulations that require fixed percentage reductions in pollution will be

(Multiple Choice)

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Question 116

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 the government decides to sell 6 permits allowing a total of 6 tons of pollution.The government starts the bidding with an opening price of $30.What happens next?

(Multiple Choice)

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Question 117

Under a first-dollar medical insurance plan,the marginal cost of treating a covered illness is

(Multiple Choice)

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Question 118

According to the textbook,as currently administered,the workers' compensation system

(Multiple Choice)

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Question 119

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 The least costly way of lowering smoke emissions from 12 tons to 9 tons would be for

(Multiple Choice)

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Question 120

Showing 101 - 120 of 140

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

In the absence of environmental protection laws,firms pollute because

As fewer families choose to purchase medical insurance,

The most efficient distribution of pollution abatement among polluters is

Airlines used to allow infant children to ride on a parent's lap for free.Suppose that they start requiring that parents purchase an extra ticket for their infants and use a safety seat.It is likely this policy would result in

According to the textbook,Manning and his colleagues found that people with $1000-deductible policies spent _____ on health care relative to people with first-dollar coverage.

Compared to a fixed percentage reduction regulation,a tax on pollution encourages

This graph illustrates the marginal cost,marginal private benefit,and marginal social benefit of immunization against a contagious childhood disease. In this graph MB1 measures _ and MB2 measures __

If the marginal costs of pollution abatement are different across firms,then regulations that require fixed percentage reductions in pollution will be

Under a first-dollar medical insurance plan,the marginal cost of treating a covered illness is

According to the textbook,as currently administered,the workers' compensation system

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

Externalities and Property Rights

The Economics of Information

Labor Markets, Poverty, and Income Distribution

Public Goods and Tax Policy

Spending, Income, and GDP

Inflation and the Price Level

Wages and Unemployment

Economic Growth

Saving, Capital Formation, and Financial Markets

Money, Prices, and the Financial System

Short-Term Economic Fluctuations

Spending, Output, and Fiscal Policy

Monetary Policy and the Federal Reserve

Aggregate Demand, Aggregate Supply, and Business Cycles

Macroeconomic Policy

Exchange Rates, International Trade, and Capital Flows

Filters

Exam 13: The Environment, Health, and Safety

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

In the absence of environmental protection laws,firms pollute because

As fewer families choose to purchase medical insurance,

The most efficient distribution of pollution abatement among polluters is

Airlines used to allow infant children to ride on a parent's lap for free.Suppose that they start requiring that parents purchase an extra ticket for their infants and use a safety seat.It is likely this policy would result in

According to the textbook,Manning and his colleagues found that people with $1000-deductible policies spent _____ on health care relative to people with first-dollar coverage.

Compared to a fixed percentage reduction regulation,a tax on pollution encourages

This graph illustrates the marginal cost,marginal private benefit,and marginal social benefit of immunization against a contagious childhood disease. In this graph MB1 measures ___ and MB2 measures ____

If the marginal costs of pollution abatement are different across firms,then regulations that require fixed percentage reductions in pollution will be

Under a first-dollar medical insurance plan,the marginal cost of treating a covered illness is

According to the textbook,as currently administered,the workers' compensation system

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

Externalities and Property Rights

The Economics of Information

Labor Markets, Poverty, and Income Distribution

Public Goods and Tax Policy

Spending, Income, and GDP

Inflation and the Price Level

Wages and Unemployment

Economic Growth

Saving, Capital Formation, and Financial Markets

Money, Prices, and the Financial System

Short-Term Economic Fluctuations

Spending, Output, and Fiscal Policy

Monetary Policy and the Federal Reserve

Aggregate Demand, Aggregate Supply, and Business Cycles

Macroeconomic Policy

Exchange Rates, International Trade, and Capital Flows

Filters

This graph illustrates the marginal cost,marginal private benefit,and marginal social benefit of immunization against a contagious childhood disease. In this graph MB1 measures _ and MB2 measures __