
Concept explainers
Sub part (a):
Identify the selection bias in the study of heart disease and fast food.
Sub part (a):

Explanation of Solution
A selection bias occurs in a study when the sample used is not random. In a study of 5,000 office workers in Chicago, they analysed only two variables namely heart disease and fast food. But in reality, there are many reasons behind the heart disease of a person. For example, lack of exercise or a poor healthy life style. In addition, there is a possibility to regularly eat fast food.
Concept introduction:
Selection bias: A selection bias occurs in a study if the sample used in that study is not random.
Sub part (b):
Identify the selection bias in the study of senior-assisted living facilities.
Sub part (b):

Explanation of Solution
A survey of senior-assisted living facilities states that majority of residents are females, because on an average, women tend to outlive men. But this is not in the case of old men citizens. They do not need as much assistance as older women. But the notable fact is that there are several older women in the population than older men.
Concept introduction:
Selection bias: A selection bias occurs in a study if the sample used in that study is not random.
Sub part (c):
Identify the selection bias in the study of graduation from private and public universities.
Sub part (c):

Explanation of Solution
This study of college student’s graduation from private and public universities states that an education from a private university will enhance a student’s earnings. A private university is more selective. Those who select private university have more earning potential than those who selected public universities. On the contrary, those students who have greater earning potential would likely to select private universities.
Concept introduction:
Selection bias: A selection bias occurs in a study if the sample used in that study is not random.
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Chapter 36 Solutions
Principles of Economics (12th Edition)
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- A point that lies OUTSIDE of the PPC can be achieved if A major technological innovation increases production efficiency A sudden influx of resources e.g., massive immigration of trained nurses Economic reform resulting in greater protection of intellectual property rights All of the above Only options 1 and 2arrow_forwardThe marginal benefit from each successive unit of medical care consumed declines BECAUSE each successive unit is more expensive to produce True Falsearrow_forwardIn the Human Capital approach, estimated monetary worth of life is MOST SENSITIVE to which key indicator Discount rate Social security payroll taxes Labour market earnings Workplace injury compensationarrow_forward
- Over the last few decades out-of-pocket costs have formed a DECLINING proportion of total consumer expenditure on medical care True Falsearrow_forwardCost benefit analyses often assumes the following about consumers EXCEPT Consumers have clear preferences among choices they are exposed to Consumers purposely choose actions that result in higher satisfaction Consumers factor in uncertainty of outcomes in their decision-making regarding net benefits and costs Consumers lack information about attributes of market goods that are necessary for ranking their choice setarrow_forwardThe TRUE relationship between MARGINAL utility and an individual’s stock of health can be best described as a scatter plot True Falsearrow_forward
- Many health economists believe that the United States spends its MARGINAL dollars on healthcare in a highly wasteful manner. This view is also known as “flat of the curve” medicine. True Falsearrow_forwardIncreasing provision of out-of-pocket cost calculators by major insurers are attempts to REDUCE price transparency for consumers True Falsearrow_forwardA price hike for medical goods/services that have an inelastic (i.e., <1) own-price elasticity of demand will tend to yield lower revenues True Falsearrow_forward
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