If a Healthy Year Is Valued at 1, an Inactive

question 5

Multiple Choice

If a healthy year is valued at 1, an inactive year is valued at .75, and each healthy year is worth $50,000, what are the (undiscounted) health benefits of a policy that adds 2 healthy years and 2 inactive years to one's life?

• A)$3.50
• B)$175,000
• C)$250,000
• D)Infinity

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Definitions:

Green Algae

Diverse group of photosynthetic organisms found primarily in aquatic environments, important for oxygen production and as a base in the food web.

Land Plants

Plants that have adapted to live in terrestrial habitats, exhibiting features such as roots, stems, and leaves for survival on land.

Red Tides

A phenomenon caused by algal blooms that turn the sea or other bodies of water a red or reddish color, often resulting in toxic effects on marine life.

Dinoflagellates

A group of single-celled organisms found in marine and freshwater environments known for their role in aquatic food chains and some can cause red tides.