The Fact That People Who Are Overweight and Obese Have

question 98

Multiple Choice

The fact that people who are overweight and obese have higher health care costs has led some people to suggest that they should pay higher taxes. Some researchers, however, point out that:

• A) the shortened life expectancy for the overweight and obese offsets the additional medical costs.
• B) the economic benefit associated with treating overweight and obese people offsets the cost.
• C) people who are overweight or obese are already paid less than equivalent employees who are not overweight.
• D) relatively few people are classified as overweight or obese.

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Definitions:

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Total Revenue

The total income received by a firm from selling its goods or services before any costs or expenses are deducted.

Marginal Product

The rise in production resulting from the use of one more unit of input.

Value of the Marginal Product

The extra income produced from the use of an additional unit of input, like capital or labor.