To estimate the value of a statistical life, economists sometimes look at the decisions that people make that will change their risk of death. For example, people may accept a more dangerous job in exchange for higher pay. This method of determining the value of a statistical life is known as
A. the trade-off method.
B. the actuarial method.
C. revealed preference.
D. stated preference.
Answer: C
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The term "market basket" means a
A) collection of goods that can fit into an average shopping cart. B) collection of goods that changes every year and is defined by Congress. C) collection of goods that is used by a typical family. D) collection of goods that is purchased during a holiday season.
Contractionary policies are government stabilization policies intended to decrease:
A. population. B. unemployment. C. spending. D. average labor productivity.
An example of a good that is rival in consumption is:
A. an air show over the whole city. B. a floral display at a large university's graduation ceremony. C. a scientific discovery that allows florists to grow flowers to which no one is allergic. D. a Big Mac.
Under current tax laws, individuals do not pay taxes on health insurance benefits they receive from their employers. As a result
A) the federal government spends more than it receives in tax revenue. B) individuals are encouraged to want generous health coverage that reduces their incentives to cut costs. C) the quality of health care provided is less than it would be if benefits were taxed. D) politicians are encouraged to raise income and payroll taxes.