Question #2: People experiencing a medical emergency have better outcomes if someone near them has first aid training and can immediately begin providing assistance. As a result, first aid training and certification are required for jobs working with the elderly and with children. First aid training also benefits the trained person's friends and family. It even benefits strangers who live in the same community since it increases the chances that there is someone near them with first aid training when a medical emergency occurs. a) Illustrate the hypothetical market for first aid training. Label each curve clearly on your graph. Use your graph to label the socially optimal level of first aid training/certificates. Will this market result in a socially optimal level of first aid training? How much worse off is society as a whole from not being at the optimal outcome? Show on your graph and explain. b) Describe one way how the government might help to increase the total surplus created by the first aid training market and why it would work.

Question #2: People experiencing a medical emergency have better outcomes if someone near them has first aid training and can immediately begin providing assistance. As a result, first aid training and certification are required for jobs working with the elderly and with children. First aid training also benefits the trained person's friends and family. It even benefits strangers who live in the same community since it increases the chances that there is someone near them with first aid training when a medical emergency occurs. a) Illustrate the hypothetical market for first aid training. Label each curve clearly on your graph. Use your graph to label the socially optimal level of first aid training/certificates. Will this market result in a socially optimal level of first aid training? How much worse off is society as a whole from not being at the optimal outcome? Show on your graph and explain. b) Describe one way how the government might help to increase the total surplus created by the first aid training market and why it would work.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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[item no.1] (Multiple Choice)
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