Which of the Following Is True About Estimating the Economic

question 25

Multiple Choice

Which of the following is true about estimating the economic value of life?

• A)There are objective market values that can be referred to, and there are mechanisms in which one could purchase a substitute at a given price.
• B)We have direct ways to estimate the -to-measure economic value of a human life.
• C)It needs to be calculated by including psychological or emotional elements that are typically attached to death.
• D)The estimation of the value of human life is needed for private purposes, but not for business purposes.
• E)Estimating the value of the income stream that the deceased person would have had if she or he had survived is one way to estimate the economic value of life.

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Definitions:

Lowballing

A persuasive technique often used in sales where an initially lower price is offered to get agreement from the buyer, only for it to be raised before the sale is concluded, often for reasons made to seem unavoidable.

Informational Influence

A form of social influence that occurs when an individual turns to the members of a group to obtain and accept information about reality.

Foot-In-The-Door

A psychological technique where getting a person to agree to a small request increases the likelihood they will agree to a larger request later.

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.