Question

NEWS WIRE EXTERNALITIES Secondhand Smoke Kills More Than 600,000 People a Year: Study Secondhand smoke globally kills more than 600,000 people each year, accounting for 1 percent of all deaths worldwide, according to a new study. Researchers estimate that annually secondhand smoke causes about 379,000 deaths from heart disease, 165,000 deaths from lower respiratory disease, 36,900 deaths from asthma, and 21,400 deaths from lung cancer. Children account for about 165,000 of the deaths. Forty percent of children and 30 percent of adults regularly breathe in secondhand smoke. Source: World Health Organization How much global output is lost annually as a result of adult deaths from secondhand smoke if the average adult produces a. $10,000 of output per year? ? billion b. $20,000 of output per year? ? billion

Answer 1

Calculate the total deaths from second hand smoke -

Total deaths = Deaths from heart diseases + deaths from lower respiratory disease + deaths from asthma + deaths from lung cancer

Total deaths = 379,000 + 165,000 + 36,900 + 21,400

Total deaths = 602,300

The total deaths from second hand smoke is 602,300

Children accounts for about 165,000 of the deaths.

Total adult deaths = Total deaths - Children deaths = 602,300 - 165,000 = 437,300

The total adult deaths are 437,300

(a)

Calculate the total global output lost -

Total global output lost = Total adult deaths * Output produced by average adult

Total global output lost = 437,300 * $10,000 = $4.37 billion

The total global output lost is $4.37 billion.

(b)

Calculate the total global output lost -

Total global output lost = Total adult deaths * Output produced by average adult

Total global output lost = 437,300 * $20,000 = $8.74 billion

The total global output lost is $8.74 billion.