To increase safety at a bad intersection, the mayor must decide whether to install a traffic light at a cost of $45,000 . If the traffic light reduces the risk of fatality by 0.4 percent, and the value of a human life is estimated to be $10 million, the mayor should
a. install the light because the expected benefit of $400,000 is greater than the cost.
b. install the light because the expected benefit of $45,000 is greater than the cost.
c. not install the light because the expected benefit of $45,000 is only equal to the cost.
d. not install the light because the expected benefit of $40,000 is less than the cost.
d
Economics
You might also like to view...
Figure 4.2 illustrates the supply and demand for t-shirts. If the actual price of t-shirts is $15, there is an
A) excess supply of 10 t-shirts. B) excess supply of 8 t-shirts. C) excess demand of 8 t-shirts. D) excess demand of 10 t-shirts.
Economics
The labor supply curve is usually upward sloping
a. True b. False Indicate whether the statement is true or false
Economics