Suppose that policymakers are doing cost-benefit analysis on a proposal to add traffic barriers to divide the flow of traffic in an effort to increase safety on a given highway. Which of the following statements is correct?
a. The benefits are usually easier to measure than the costs.
b. Because human life is priceless, any measure to increase traffic safety would generate benefits that outweigh the costs.
c. Estimating the value of a human life is difficult but necessary to evaluate the proposal.
d. Both a and b are correct.
c
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Refer to the figure above. What is the domestic production of pens in Lithasia, after the economy opens up to free trade?
A) 6 units B) 12 units C) 16 units D) 22 units
Specialization in production
a. raises productivity. b. requires money. c. stimulates exchange. d. All of the above are correct.
Water is considered a scarce good because:
A) scarce goods are less expensive. B) not enough of it is available for all needs and because it is less expensive. C) it does not have any uses. D) not enough of it is available for all needs.
If you enjoy playing golf, the opportunity cost of cleaning your room
a. is the same on sunny days as it is on rainy days b. is greater on sunny days than it is on rainy days c. is smaller on sunny days than it is on rainy days d. does not change with the weather conditions e. is equal to the opportunity cost of any other chore you have to do that day