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[Figure A] Which element from the model would most closely match fewer worker sick days? A. Production gains B. Other resources (such as buildings or

[Figure A] Which element from the model would most closely match fewer worker sick days?

A. Production gains

B. Other resources (such as buildings or supplies)

C. Health care

D. Health production

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Equation Notes: Equation A: FV 1. Terms PV = a. PV = present value (1+r) b. FV = future value C. 1 = One (part of the mathematical construct that defines this formula) PV = > FV. d. r = Discount rate per period of time Equation B: (1+r) e. t = Number of time periods in the future when FV will be received PV = FV . FV . 2. Equations B & C are alternate ways to +...+ FV express the same idea, the present value Equation C: (1+r) (1+r) (1+r) of a string of payments Equations Figure D Notes: Improved 1. This figure was adapted from Figure 13.1 in Olsen's First Edition but was Health care Health used in lecture (see Slides 3 & 4). 2. The dashed arrows from the "Production Gains" box to both the Health "Health care" and "Other resources" boxes were added. Production Other resources Production gains Figure A: Healthcare Costs and Benefits

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