Answer the following statement(s) true (T) or false (F)
1. Comparative risk analysis is aimed at minimizing the absolute level of a risk.
2. Risk-benefit analysis and benefit-cost analysis are examples of risk management strategies.
3. President Regan’s Executive Order 12291 called for the explicit use of risk-benefit analysis.
4. Economists support the use of allocative efficiency as a criterion to identify the “acceptable” level of risk.
5. In the United States, all environmental laws setenvironmental risk at a level where the MSB equals the MSC.
1. False
2. True
3. False
4. True
5. False
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Four stores have a problem with theft and security is a public good. Let S stand for the number of person-hours of security patrols per week. The marginal benefit of security patrols to each of the stores is given by the formula MB = 200 - 2S. Patrols cost $20 per hour. Which of the following gives the marginal social benefit function?
A. MSB = 50 - 0.5S B. MSB = 800 - 8S C. MSB = 800 - 2S D. MSB = 196 - 2S
The existence of lags prevents the instantaneous adjustment of the economy to policies changing aggregate demand, thereby strengthening the case for
A) supply-side policy. B) nonactivists. C) activists. D) demand-management policy.
Total profit of a competitive firm can be found by multiplying profit per unit times units sold
a. True b. False Indicate whether the statement is true or false
In the long run,
a. inputs that were fixed in the short run remain fixed. b. inputs that were fixed in the short run become variable. c. inputs that were variable in the short run become fixed. d. variable inputs are rarely used.