Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour. The opportunity cost of producing a unit of Y is
A) 1 unit of X per unit of Y for Agnes and 2 units of X per unit of Y for Brenda.
B) 1 unit of X per unit of Y for Agnes and 1/2 unit of X per unit of Y for Brenda.
C) 1 hour for Agnes and 1/2 hour for Brenda.
D) 1 hour for Agnes and 2 hours for Brenda.
B
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Suppose the recipient of a kidney transplant has stated that she would prefer 5 years of perfect health to the 10 years she expects to live with her transplant. For this person, each of her remaining 10 years of life has a QALY value of
a. ½. b. 2 c. 5 d. 10 e. 50.
Tennessee emits sulfur dioxide that flows into North Carolina. In meeting sulfur emissions regulations, the Tennessee Valley Authority (TVA), which produces electricity, buys sulfur emission permits from Wyoming. The resulting hot spot problem is:
A. The citizens of Wyoming will experience higher sulfur emissions as a result of the emissions trading program. B. The citizens of Wyoming will experience lower sulfur emissions as a result of the emissions trading program. C. The citizens of Tennessee will pay more to reduce sulfur emissions than if the government used a command-and-control approach. D. The citizens of North Carolina will suffer higher emissions as a result of the emissions trading program.