Question

Paul works at the UQ Swimming Pool Complex in the cafe. Management of the Pool Complex has a policy that all Pool Complex staff must be trained in CPR. Once employed, Paul was required to complete the CPR training. Some months later, while on holidays at Moreton Island, Paul’s friend loses consciousness in the surf. Paul successfully performs CPR and saves his friend’s life.

Which of the following statements are true:

		UQ Pool's management policy creates no externalities.
		UQ Pool's management decision to give CPR training to all staff is economically inefficient.
		For social economic efficiency, UQ Pool's management should not consider the possibility of its staff using their skills elsewhere when determining whether to give them CPR training.
		UQ Pool's management policy creates a positive externality.

Answer 1

Option 4.

Because of CPR training, Paul was able to save his friends life which is a positive externality added to the well being of the society.