Suppose a radar-activated braking system that can help prevent crashes is an option on a new car. It costs $600 and reduces the chance of dying in an auto accident by 1/700. The implicit value placed on life by a person who has the system installed is therefore:
A. at least $420,000.
B. less than $420,000.
C. at least $432,000.
D. exactly $600.
Answer: A
Economics
You might also like to view...
Budget deficits inevitably lead to inflation in
A) nations that are unable to borrow from the public. B) small nations. C) nations that can easily borrow from the public. D) budget deficits have no effect on inflation.
Economics
What is a mutual fund?
Economics
A point inside the production possibilities curve may indicate that resources are not being used efficiently.
a. true b. false
Economics
The demand curve facing a monopolist is
A) downward sloping. B) upward sloping. C) horizontal. D) vertical.
Economics