To Increase Safety at a Bad Intersection,you Must Decide Whether

question 337

Multiple Choice

To increase safety at a bad intersection,you must decide whether to install a traffic light in your hometown at a cost of $25,000.If the traffic light reduces the risk of fatality by 0.3 percent,and the value of a human life is estimated to be $10 million,you should

• A) install the light because the expected benefit of $30,000 is greater than the cost.
• B) install the light because the expected benefit of $25,000 is greater than the cost.
• C) not install the light because the expected benefit of $25,000 is only equal to the cost.
• D) not install the light because the expected benefit of $3,000 is less than the cost.

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Definitions:

Recession Phase

An interval of economic downturn where commercial and manufacturing operations decrease, commonly indicated by two successive quarters of falling GDP.

Disinflation

A slowdown in the rate of increase of the general price level of goods and services in a nation's gross domestic product over time.

Labor Force

The total number of people who are both employed and actively seeking employment.

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The process in which individuals engage in a diligent search for employment or opportunities, often involving submitting applications and attending interviews.