A city currently emits 16 million gallons (MG) of raw sewage into a lake that is beside the city. Table 12.13 shows the total costs (TC) in thousands of dollars of cleaning up the sewage to different levels, together with the total benefits (TB) of doing so. Benefits include environmental, recreational, health, and industrial benefits. TC TB 16 MG Current Current 12 MG 50 800 8 MG 150 1300 4 MG 500 1850 0 MG 1200 2000

A city currently emits 16 million gallons (MG) of raw sewage into a lake that is beside the city. Table 12.13 shows the total costs (TC) in thousands of dollars of cleaning up the sewage to different levels, together with the total benefits (TB) of doing so. Benefits include environmental, recreational, health, and industrial benefits. TC TB 16 MG Current Current 12 MG 50 800 8 MG 150 1300 4 MG 500 1850 0 MG 1200 2000

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter4: Economic Evaluation In Health Care

Section: Chapter Questions

Problem 5QAP

See similar textbooks

Similar questions

Over the past 40 years in the United States, the number of vehicles on the road has A) decreased but the number of vehicle miles has increased, and the pollution per car has increased. B) decreased, the number of vehicle miles has decreased, and the pollution per car has decreased. C) increased, the number of vehicle miles has increased, but the pollution per car has decreased D) increased, the number of vehicle miles has increased, and the pollution per car has increased.
Mostly everyone would agree that pollution is undesirable. But cleaner environment requires higher production costs and a lower level of output. It is difficult though to measure the value on the health, environmental, and aesthetic benefits resulting from a cleaner environment. The health effects associated with the release of various chemicals into the air or water are often not fully understood. While the relationship between carbon dioxide emissions and global warming is the subject of a great deal of scientific speculation and study, precise measurements of the expected environmental damage are not yet available. It is also not easy to place a value on the aesthetic pleasure that individuals may experience knowing that the air and water surrounding them is cleaner. The energy giant Royal Dutch Shell have reached its oil production peak in 2019. Now the company’s focus now is on shifting to renewables and reducing its carbon footprint through green technologies. Did you know that…
The government would like to introduce a subsidy to help citizens who need their car for work and cannot afford to buy a ULEZ-compliant car. It also wants to ensure that only citizens who need to drive their car regularly use the subsidy. Instead of the two groups of citizens discussed above, we focus on one particular citizen who does not drive very often, only once a year. As a result, this citizen does not emit excessive pollution even with a car that is not ULEZ-compliant. The government would therefore prefer citizens like her not to buy a new car to avoid having to pay the subsidy unnecessarily. Once a year, the citizen derives a benefit of driving through the ULEZ area of B = 20. She can choose to either buy a new ULEZ-compliant car at a cost of C = 10, 000, denoted x = new, or stick with her old car at no cost, denoted x = old. 5 If she sticks with her old car, she has to pay a ULEZ fee of τ = 12.50 on the day that she drives. Her net benefit of driving on that day is…
The government would like to introduce a subsidy to help citizens who need their car for work and cannot afford to buy a ULEZ-compliant car. It also wants to ensure that only citizens who need to drive their car regularly use the subsidy. Instead of the two groups of citizens discussed above, we focus on one particular citizen who does not drive very often, only once a year. As a result, this citizen does not emit excessive pollution even with a car that is not ULEZ-compliant. The government would therefore prefer citizens like her not to buy a new car to avoid having to pay the subsidy unnecessarily. Once a year, the citizen derives a benefit of driving through the ULEZ area of B = 20. She can choose to either buy a new ULEZ-compliant car at a cost of C = 10, 000, denoted x = new, or stick with her old car at no cost, denoted x = old.If she sticks with her old car, she has to pay a ULEZ fee of τ = 12.50 on the day that she drives. Her net benefit of driving on that day is therefore…
Consider this in relation to the social and economic recovery from the COVID-19 pandemic. What are the pros and cons for national security, health, and local, national, and global economies?
Suppose you are part of an economic analysis team charged with recommending a policy response to pesticide risks. Explain the steps your team should take and why.
Please relate the current Covid-19 pandemic issues to any concept in Microeconomics. You can answer by giving an example and discuss it thoroughly.
Economic Epidemiology Suppose that some members of a population are infected with a sexually transmitted virus that causes disease X, and some are infected with another sexually transmitted virus that causes disease Y. Some members of the population may be infected with both viruses. While diseases X and Y are similar in that they are both sexually transmitted diseases, the disease X is much more harmful to its carriers than the disease Y is to its carriers. Condom use is highly effective in preventing the transmission of either disease. Suppose scientists discover a cure for the sexually transmitted disease X. This cure (a vaccination) will eliminate the virus causing the disease X from its carrier before its carrier can suffer any harm from the virus. Everybody is immediately given this vaccination against the disease X. a What do you expect to happen to the prevalence of the virus causing the disease X in the population? Draw a graph with time on the horizontal axis and prevalence…
In order to suppress the spread of a viral disease, the government has resorted to nonpharmaceutical interventions (NPIs) that restrict the mobility of individuals such as quarantine and lockdown. Provide an economic framework, based on private and social benefits and costs that could guide the government in selecting the appropriate form and level of NPI. In the absence of a highly contagious disease, an individual engaging in activity x does not externalize any cost to others. In the presence of the disease, then an infected individual can transmit the disease to others during the performance of his or her activities. a. Discuss the nature of the externality, if there is any.
During a nationwide program to immunize the population against a new strain of the flu, public health officials determined that the cost of inoculating x% of the susceptible populationwould be approximately C(x) = 1.85x/100-x million dollars. (i) What would it cost to providing immunization to the first 20% of the susceptible population?(ii) What would it cost to provide immunization to the next 30%of the susceptible population?(iii) Suppose 17 million dollars are available for providing immunization. What percentage of the susceptible population will not receive immunization?
The town of Chefsmeadow has 100 residents. Each resident has a car. Each car produces $30 worth of pollution per person. In other words, each person in the town breathes in $30 worth of air pollution harm from one person's car as that person drives around the town. Thus each car produces $3,000 worth of air pollution overall ($30 per person x 100 people = $3,000 total harm). Because there are 100 cars, the total dollar estimate of all the pollution harm caused by all the cars is $300,000.There is a device called a "Polluteaway" that can be installed in a car and cuts its air pollution in half. The device costs $1,000 to buy and install. For the following questions, you can assume each person cares only about the air pollution they breathe and not that others have to breathe. Remember, write the number of the question in front of your answer in the text submission box. 1. What is the dollar gain or loss to one individual (let's call him Fred) in buying and installing a Polluteaway in…
The Centers for Disease Control and Prevention (CDC) recommended against vaccinating the whole population against the smallpox virus because the vaccination has undesirable, and sometimes fatal, side effects. Suppose the accompanying table gives the data that are available about the effects of a smallpox vaccination program. Percentage of population vaccinated Deaths due to smallpox Deaths due to vaccination side effects 0% 200 0 10 180 4 20 160 10 30 140 18 40 120 33 50 100 50 60 80 74 a. Calculate the marginal benefit (in terms of lives saved) and the marginal cost (in terms of lives lost) of increasing the percentage of the population vaccinated from 20% to 30%. In addition, calculate the net increase in human lives. MB: lives saved MC: lives lost Net benefit: lives saved b. Using marginal analysis, determine the optimal percentage of the population that should be vaccinated. Optimal percentage:…