Exam 13: The Environment, Health, and Safety

Suppose that all workers value a safe job $2,000/year more than a risky job.The cost of safety is $700 per worker.Firms currently pay $35,000 per year to workers,without any effort to improve safety. Suppose new firms began to offer workers $34,000 per year and safer jobs.The total benefit to workers of the existing firms' offer is __________ and the benefit of the new firms' offer is __________.

This graph illustrates the marginal cost,marginal private benefit,and marginal social benefit of immunization against a contagious childhood disease. Private market incentives would result in ___ children being immunized.The socially optimal number of children immunized is ____.

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. If the weekly marginal cost of security cameras is given by MC,the optimal number of security cameras that should be mounted in the library is ____,the optimal number of security cameras that should be mounted in the supermarket is ____,and the optimal number of security cameras that should be mounted in the museum is ____

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 It would cost Firm A ____ to reduce emissions by one ton if it currently emits 3 tons,and ___ to reduce an additional ton of emissions if it currently emits 2 tons.

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. Pat is more ____ than Chris.

As fewer families choose to purchase insurance,the cost of premiums will rise,ensuring that fewer,and sicker,families buy insurance.This is an example of

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 Suppose the police department has $160,000 to spend on detectives.Because of political pressures all four are assigned to murder prevention and none to burglary prevention.The marginal benefit gained by assigning the fourth detective to murder prevention is _____,and the marginal benefit that would have been gained had the detective been assigned to burglary prevention is ____.

The three firms shown below can choose among three workplace safety alternatives: continue with the status quo,provide safety training or purchase new safety equipment.The injury rates for the firms under the three alternatives as well as the costs of the alternatives are shown in the table.The cost of treating an injury is $200. Status Quo Safety Training New Safety Equipment 0 \ 100 \ 700 0 \ 50 \ 600 0 \ 200 \ 500 If a 2% reduction in workplace injuries is valued at $1000 and can be achieved by having workers wear large,heavy goggles,then

The textbook cites a study comparing a group of consumers with first-dollar coverage and a group with a $1000 deductible.The study results indicate that those with the deductible used __________ amount of medical services and had __________ health outcomes.

An economic argument in favor of providing medical care through HMOs is that they

The three firms shown below can choose among three workplace safety alternatives: continue with the status quo,provide safety training or purchase new safety equipment.The injury rates for the firms under the three alternatives as well as the costs of the alternatives are shown in the table.The cost of treating an injury is $200. Status Quo Safety Training New Safety Equipment 0 \ 100 \ 700 0 \ 50 \ 600 0 \ 200 \ 500 If all three firms provided safety training the marginal cost would be ___ and the marginal benefit would be ____

If all firms were to pay the same premium per worker into the workers' compensation system,then

According to the textbook,the percentage of gross domestic product devoted to healthcare between the years 1940 and 2000

Insurance that pays for all expenses generated by the insured's activity is known as

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. Pat will be better off taking the ____ job and Chris will be better off taking ___ job.

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

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 According to the basic rule for allocating crime control resources,the optimal amount of crime control occurs when

Prior to World War II,most consumers in the United States

Pollution permit policies achieve an _____ outcome because

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 The fifth light is estimated to reduce the fatality rate by ___ at a marginal cost of $__ per life saved.