The Occupational Safety and Health Administration (OSHA) has determined that the probability of a worker dying from exposure to a hazardous chemical used in the production of fertilizer is 0.008 . The cost of imposing a regulation that would ban the chemical is $32 million. If the value of a human life is equal to $10 million, how many people must the policy affect in order for the benefits to
exceed the costs?
a. 256
b. 401
c. 3201
d. 4001
b
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When a permanent negative supply shock hits the economy ________
A) in the long-run, output is permanently lowered whether the central bank reacts or not B) inflation decreases in the short-run C) there is no long-run effect on inflation whether the central bank reacts or not D) all of the above E) none of the above
If more people enter medical school, we can expect:
a. the demand for doctors to increase. b. the supply of doctors to increase. c. the demand for doctors to decrease. d. the supply of doctors to decrease. e. no effect on the supply or demand of doctors?just a movement along the curves.
Markets provide the efficient amount of a good or service when
a. externalities are present. b. monopoly exists. c. public goods are present. d. competition is present and externalities and public goods are absent.
If the cost of producing automobiles increases, the price, equilibrium quantity and consumer surplus will most likely change in which of the following ways? Price Quantity Consumer Surplus
A. Increase Increase Increase B. Increase Increase Decrease C. Increase Decrease Decrease D. Decrease Increase Decrease E. Decrease Decrease Decrease