Suppose that a year of life is worth $100,000, and that the cost of a new treatment for HIV is $30,000 per year, and that it increases the life expectancy by 3 years. If the discount rate is 3 percent, is the HIV treatment worth the cost to a 30-year-old male who expects to live for 2 more years without treatment.
A) No, since the present value of costs are greater than the present value of benefits.
B) Yes, since the present value of benefits are greater than the present value of costs.
C) Yes, since the present value of benefits are equal to the present value of costs.
D) Not enough information is provided to make a determination.
Correct Answer:
Verified
Q53: Suppose that at current consumption levels the
Q54: Proponents of a voucher system argue that:
A)
Q55: Suppose Paul's employer pays a health insurance
Q56: What is the total present value of
Q57: The true cost of the Canadian nationalized
Q59: Suppose that the cost of a new
Q60: Workers at small firms have a greater
Q61: Suppose that a year of life is
Q62: Discuss the shortcomings of third party payments
Q63: Carefully explain what is meant by "excessive
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents