The annual demand for flu shots from students and employees at Upstate University is shown in the graph below. Assume that the marginal cost of providing flu shots is $4 per shot. Student and employee health insurance does not cover flu shots. 8 7 5 3 1 100 200 300 400 500 600 Flu shots А. If the price of a flu shot is $4, how many flu shots are purchased? Quantity: A flu shot reduces not only the recipient's chance of getting the flu but also the chance that the recipient will pass the flu on to someone else. If reduced risk to others has a value of $2 per shot, what is the optimal quantity of flu shots? В. Quantity: Explain, using the graph: 6. %24

The annual demand for flu shots from students and employees at Upstate University is shown in the graph below. Assume that the marginal cost of providing flu shots is $4 per shot. Student and employee health insurance does not cover flu shots. 8 7 5 3 1 100 200 300 400 500 600 Flu shots А. If the price of a flu shot is $4, how many flu shots are purchased? Quantity: A flu shot reduces not only the recipient's chance of getting the flu but also the chance that the recipient will pass the flu on to someone else. If reduced risk to others has a value of $2 per shot, what is the optimal quantity of flu shots? В. Quantity: Explain, using the graph: 6. %24

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 4PA

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Let Q be the number of public toilets (measured in thousands). The value of toilets is given by V = 2 va, while the cost of the toilets is given by C = 0.2Q. A bureaucrat in the health ministry wishes to maximise the size of their agency. (a) What would be the number of public toilets which would accomplish this (to the nearest thousand)? (b) What would be the efficient number of toilets (to the nearest thousand)? (c) What measures could parliament, which oversees the size of ministries, do to prevent them growing ever bigger?
2. A consumer’s demand for a medical service is: Q = 100 - ?? where ?? is the out-of-pocket price she/he actually faces. She/he is considering four different insurance options: uninsurance, full insurance, a 50% coinsurance plan, and a copayment plan with a $25 copay. a. Assume this service has a list price of ??= $70. Calculate Q under each insurance plan. b. Calculate the amount of social loss under each insurance plan.
1. Consider the following conversation.CHAD: “None of the COVID-19 vaccines in Canada has full Health Canadaapproval, and if you get injured from the vaccines, then the pharmaceutical companiesare not liable. Furthermore, the vaccines do not prevent against the spread ofcoronavirus, though they may reduce symptoms. However, their efficacy wanes aftera few months.”VIRGO: “Vaccines have helped humanity to conquer diseases like tetanus andsmallpox. Why are you saying that vaccines don’t help at all?”Which logical fallacy does Virgo commit?(A) Argument from authority.(B) Ad Hominem.(C) Post Hoc Ergo Procter Hoc.(D) Straw Man.
Ali Receives Utility From (D)omestic Vaccines from Kayseri, and the Sinovac Vaccine-(F)oreign. The utility structure is U(D,F)=D x F. The price of the foreign vaccine because of increasing returns to scale is $200, whereas at its earlier stages, the domestic vaccine is produced at a higher cost, and higher price of $250. The government has given each and every citizen a fixed payment of $8000 to spend just on vaccines, but it has not specified which vaccines. a- Does Ali Solve the Utility Maximization Question in an interior equilibrium or a corner solution? How do you know? What condition does the interior equilibrium necessitate regardless. b- Find Ali's Utility Maximizing Level of Domestic and Foreign Vaccines when he uses just the government allowance on vaccines? What is his utility level? C- Suppose the government wants to decrease Turkey's health exports. It pushes a vaccine subsidy, just for domestic vaccines that makes the price of domestic equal to $160. How does the utility…
Consider a used car market with asymmetric information. The owners of used cars know what their vehicles are worth but have no way of credibly demonstrating those values to potential buyers. Thus, potential buyers must always worry that the used car they are being offered may be a low quality “lemon.” a. Suppose that there are equal numbers of good and bad used cars in the market and that good used cars are worth $13,000 while bad used cars are worth $5,000. What is the average value of a used car? b. By how much does the average value exceed the value of a bad used car? By how much does the value of a good used car exceed the average value? c. Would a potential seller of a good used car be willing to accept the average value as payment for her vehicle? d. If a buyer negotiates with a seller to purchase the seller’s used car for a price equal to the average value, is the car more likely to be good or bad? e. Will the used-car market come to feature mostly—if not exclusively—lemons? How…
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:…
4 Suppose that a person’s demand curve for physician office visits is P = 200 – 20Q, where P is the price of an office visit, and Q is the number of physician visits per year. Also, suppose that the marginal cost of an office visit is always $60. c. Suppose this person obtains health insurance. The policy has no deductible, but has a coinsurance rate of 50 percent. How many visits will occur now? d. Suppose that the policy has no deductible but has a $20 co-payment. How many visits will occur now? e. Suppose the policy has a $20 co-payment and a $500 deductible. How many visits will occur now? f. Calculate the deadweight losses in the policies described in parts c, d, and e.
1.) Suppose an insurance company wants to charge a very healthy individual a premium of $1,200 a year for health coverage. It also wants to charge a less healthy individual a premium of $3,600 a year for health coverage. It is seeking to ascertain from any given customer information regarding his/her health by asking for several pieces of health-related information, such as doctor assessments of the person’s health, history of health-related problems, etc. The opportunity cost of a very healthy person securing a health report is $250 and the opportunity cost of a less healthy person securing a health report is $650. Of the choices below, how many reports should the company request to best ensure its paying the right premium to the right person? a. 6. b. 2. c. 0. d. 14. 2). Reconsider again the previous health insurance question. Suppose that due to some innovations in technology as well as increased efforts to shorten/streamline patient reports as doctors look for ways to…
A flu shot typically costs about $25–$50 but some firms offer their employees free flu shots. Why might afirm prefer to offer its employees free flu shots if the alternative is an equally costly wage increase?
Suppose the administration of a University that is located a high-crime urban area mustdecide on a policy to increase policing on its campus. The student population is 10,500 students but iscould increase if crime is reduced. The cost of added policing in terms of additional salary and equipmentis estimated to be $2.4 million per year. Suppose the administration plans to make their decision with thehelp of a benefit cost analysis of the policy. VSL is $11.8 million a. Explain how the concept of Value of a Statistical Life might factor into a benefit cost analysis of thispolicy. b. How many lives would need to be save to justify the added policing costs if only prevented deathswere considered as the policy benefit? c. Suppose it is believed that student enrollment will increase in the future if crime on campus is reduced.Write a formula to calculate the present value of benefits of policing if student enrollment increases by4% each year.
#3. Hannah gets 50 utils from visiting her family for Thanksgiving. But there is a 1% chance that she will get the coronavirus from them. If she gets the coronavirus, her utility is -6000 utils. Her total utility would be -5950 (i.e. 50 – 6000). She gets 0 utils from staying healthy (total utility = 50 + 0 = 50). If Hannah doesn't visit her family for Thanksgiving, then she gets -25 utils from eating turkey cold cuts alone in front of the TV. In that case, there is no risk of getting sick. What will Hannah do? a. Visit her family for Thanksgiving b. Not visit her family for Thanksgiving c. Visit her family if she is risk-loving, not visit if she is risk-averse d. Visit her family if she is risk-averse, not visit if she is risk-loving
1. When an auto insurance company is screening, it is A. attempting to keep its private information private. B. marketing its policies to customers. C. ignoring the possibility of moral hazard in order to minimize adverse selection. D. trying to determine if a driver is an aggressive driver or a safe driver. E. making its private information public. 2. In the market for health care services, Health Maintenance Organizations A. help overcome adverse selection by enrolling only healthy clients. B. exist to insure people with preexisting medical conditions. C. overprovide medical care and thereby result in increased costs. D. help overcome moral hazard by monitoring the quality of the service. E. None of the above answers are correct 3. Moral hazard in the market for healthcare services leads Question content area bottom Part 1 A. to providers over treating patients.. B. to healthy people not buying health insurance. C. patients to adopt healthy life styles. D. to all…