Briefly describe revealed preference and stated preference as means of determining the value of a statistical life.
What will be an ideal response?
Revealed preference techniques require the researcher to study the trade-offs people make in their daily lives that change their risk of death, such as taking a safer job in exchange for a pay cut. Stated preference techniques ask people about potential trade-offs, such as how much they would sacrifice to obtain a safer job.
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The United States economy is generally operating _________ the production possibilities curve.
A. inside B. outside C. on
A secondary market is one in which
A) new securities are issued. B) financial intermediaries make loans. C) savers place funds in financial intermediaries. D) existing securities can be bought and sold.
The two types of financial systems tend to treat
A) small firms alike. B) large firms alike. C) both small and large firms alike. D) neither small nor large firms alike.
An example of a transaction that will be a surplus item on the U.S. balance of payments is
A) a U.S. resident purchasing French wine. B) a French subsidiary's plant in New Jersey purchasing parts from the main plant in Paris. C) a gift of wheat from the U.S. government to India. D) a tourist from Germany buying a ticket to fly from New York to Chicago on American Airlines.