Reference no: EM1395110
If the elasticity of aggregate cigarette demand with respect to advertising were 0.15, by extrapolation, what is the effect of each of the following on cigarette consumption:
(a) 10% reduction in advertising?
(b) 50% reduction in advertising?
(c) Ban on cigarette advertising, i.e. 100% reduction in advertising?
In Becker and Murphy's "rational addicts" model, smokers are perfectly aware of the potential for smoking to cause addiction, and they take this into account when deciding whether or not to smoke. Suppose a new technology-such as a nicotine patch-is invented that makes quitting smoking much easier (less costly) for an addict. If Becker and Murphy's model is correct, what effect would you expect this invention to have on people's smoking behavior? Would your answer be different for teenagers than for long-term smokers?
I. The Production of Health
Provide an example of a situation where marginal productivity would decline because of an increase on the extensive margin. Please try to use a real-life example for a specific medical treatment.
The CPI for hospital care (as one example) measures the cost of a two-person "hospital room and board" charge as an important part of the CPI hospital index. The cost of a day in the hospital has increased from $329 in 1980 to $2025 in 2010.
The CPI was 82.4 in 1980 and 218.06 in 2010 and the Medical CPI was 74.9 in 1980 and 388.4 in 2010.
(a) From the data given, can we conclude that the price of a day in the hospital has increased dramatically in 30 years?
(b) Does the difference in the change in the general CPI compared to the change in the Medical CPI clearly indicate that there has been more inflation in the medical industry than overall in the economy?
(c) In his 2014 State of the Union Address, the President claimed that rising cost of health care "eats up more and more of our savings each year". Are patients definitely worse off with the higher prices?
People living in Boston are hospitalized about 1.5 times as often as those living in New Haven, yet their health outcomes, based on age-specific mortality rates, appear to be identical. Does this mean that hospital care has no ability to improve health?
|
Write essay on multiple competing forms of christianity
: Write 150 words brief essay of this thesis: Thesis: In 16th century, unity of "Christendom" was shattered as multiple competing forms of Christianity emerged.
|
|
Expression for oc curve
: A single test on a certain device costs more than the entire lot. It is therefore decreed that not more than three tests will be performed per lot.
|
|
Calculate the heat capacity
: An unknown metal X with a mass of 28 grams absorbs 58 J of heat. calculate the heat capacity if Its temperature raises from 31.1 °C to 39.9 °C.
|
|
Calculate the chi square value of a monohybrid cross
: A man and a woman each have one sickle-cell anemia allele. He is color blind, while she is a carrier for color-blindness. What is the probability that a daughter will have both full-blown sickle-cell anemia and be colorblind?
|
|
Elasticity of aggregate cigarette demand
: Does the difference in the change in the general CPI compared to the change in the Medical CPI clearly indicate that there has been more inflation in the medical industry than overall in the economy?
|
|
Which graduated cylinder would have greatest volume change
: Which graduated cylinder would have the greatest volume change if equal masses of Au and Pt are transferred to equal volumes of H2O in separate graduated cylinders? Density of gold = 19.31 g/cm3 , density of platinum =21.43 g/cm3
|
|
Experiment and observational study
: A meat processing plant has processed an average of 100 tons per day for the last several years. Newer processing machines have been installed recently.
|
|
Conclusion of the price reduction
: At the .01 significance level, can the manufacturer conclude that the price reduction resulted in an increase in sales?
|
|
What is the volume in the cylinder at equilibrium
: Assume that 0.406 mol Carbon (g) is placed in a cylinder that is expanding. The barometric pressure on the outside of the cylinder is constant at 1.00 atm and the temperature is 300.0 K.
|