Suppose that installing an overhead pedestrian walkway would cost a college town $150,000 . The walkway is expected to reduce the risk of fatality by 3 percent, and the cost of a human life is estimated at $10 million. The town should
a. install the walkway because the estimated benefit is twice the cost.
b. install the walkway because the estimated benefit equals the cost.
c. not install the walkway, since the cost is twice the estimated benefit.
d. install the walkway, since the cost of even a single life is too great not to take action.
a
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
The above table gives some of the costs of the Delicious Pie Company. What is the average variable cost of producing 300 pies?
A) $1,800 B) $6 C) $5 D) More information is needed to calculate the average variable cost.
Which of the following would likely cause aggregate demand to shift to the right?
A. Consumer confidence regarding future income increases B. A tax credit for small businesses is issued C. The government builds new highways D. All of these are likely to cause aggregate demand to shift to the right.
Capital charges equal the company's invested capital divided by the weighted average cost of capital
Indicate whether the statement is true or false