The local Department of Public Health (DPH) is starting a set of programs aimed at reducing childhoo Show more The local Department of Public Health (DPH) is starting a set of programs aimed at reducing childhood obesity among young children. The programs will be completely funded by a new special tax earmarked for these programs only.
The local Department of Public Health (DPH) is starting a set of programs aimed at reducing childhoo Show more The local Department of Public Health (DPH) is starting a set of programs aimed at reducing childhood obesity among young children. The programs will be completely funded by a new special tax earmarked for these programs only.
An expert panel recommends 6 (six) alternatives (A to F) for consideration depending upon budget size. All alternatives are mutually exclusive; i.e. can be implemented as a stand-alone project. Using cost and effectiveness data for these projects in the table first complete the table and then respond to the questions below: Cost ($) Effectiveness (# of kids) Cost- Effectiveness Ratio Incremental Cost Incremental Effectiveness Incremental Cost- Effectiveness Ratio C E C/E ?C ?E ?C/?E 10000000 12000 833.33 10000000 12000 833.33 20000000 17000 1176.47 20000000 17000 1176.47 30000000 20000 1500 30000000 20000 1500 40000000 24000 1666.67 40000000 24000 1666.67 50000000 35000 1428.57 50000000 35000 1428.57 60000000 41000 1463.41 60000000 41000 1463.41 The Department of Revenue estimates that the special tax dedicated to funding Directors Initiative for 2014 will be $35 million. Guided by purely economic effectiveness concepts which project(s) should the Director select and why? (The Director cannot spend more than the annual tax revenue; however leftover funds can be carried over to the next year.) Will your answer to the question above change if the tax revenues were to be $70 million? Why? Will your answer to the question above change if the tax revenues were to be $120 million? Why? Show less
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