ESSENTIALS OF ECONOMICS WITH CONNECT
11th Edition
ISBN: 9781266628146
Author: SCHILLER
Publisher: MCG
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Question
Chapter 1, Problem 11P
To determine
(a)
To plot: the
To determine
(b)
To find: the education level when maximum health care is provided.
To determine
(c)
To find: the
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Students have asked these similar questions
1. Suppose a new drug was discovered that slowed the deterioration of health that accompanies aging. (All the graphs you draw should include labels, down and right arrows to indicate the changes before and after the new drug were discovered)
a. What's the effect on the available time for work Tw and play Tz? Draw its labor–leisure graph including both budget constraints and indifference curve.
b. What's the effect on optimal health H* ? Draw its marginal efficiency of capital (MEC) curve.
c. Draw the production possibilities frontier. Explain it.
Draw a health production function with individuals receiving some health-producing intervention as inputs and health benefits as outputs that show declining returns in output. What does “declining returns” imply about the marginal health benefit per person served/treated along this production function? How does this relate to “specialization of inputs”? How about “selection to treatment”?
How do federal agencies typically value lives saved by health, safety, and environmental regulations?
A.
Agencies consider medical expenses, pain and suffering, lost wages, and funeral and burial expenses
B.
Agencies ask individuals how much they would pay to avoid dying and average the results for the population
C.
Agencies use labor-market data to determine how much individuals are willing to pay to avoid (or, willing to accept to face) small fatality risks and use this information to generate a value of statistical life
D.
(A), (B), and (C)
E.
(B) and (C)
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