A government airline safety regulation reduces the probability of a fatal airline crash by 0.005. If the costs associated with each airplane crash are equal to $600 million, the regulation has an expected marginal benefit of at least:

A. $3,000,000.
B. $600,000.
C. $1,000,000.
D. $2,000,000.


Answer: A

Economics

You might also like to view...

As the value of the Gini coefficient approaches one

A) income distribution becomes less unequal. B) the percentage of the population under the poverty line decreases. C) income distribution becomes more unequal. D) the percentage of the population under the poverty line increases.

Economics

The Phillips curve indicates that when the labor market is ________, production costs will ________ and aggregate supply decreases

A) easy; rise B) easy; fall C) tight; fall D) tight; rise

Economics

Using the quantity equation, the demand for money can be expressed as

A) M=(V x Y)÷P. B) M =(P x Y)÷V. C) M = (P x V) ÷ Y. D) M x V=(1/P)V x Y.

Economics

A portion of a worker's earnings is economic rent if

A. the worker was the last person hired at the going wage rate. B. the worker has industry-specific skills. C. the supply curve of labor is horizontal. D. the worker would accept a small wage cut without quitting or working for someone else.

Economics