When an Infinite Value Is Placed on Human Life Which

question 36

Multiple Choice

When an infinite value is placed on human life which of the following represents policymakers who rely on cost-benefit analysis?
(i) they are forced to pursue any project in which a single human life is saved
(ii) they are likely to make decisions that optimally allocate society's scarce resources
(iii) they are left with nonsensical results

• A)(i) and (ii)
• B)(ii) and (iii)
• C)(i) and (iii)
• D)(i), (ii) and (iii)

---

Definitions:

Deadweight Loss

A reduction in total welfare or economic efficiency, typically resulting from inefficiencies such as taxes or monopolies.

Mutually Beneficial Transactions

Economic exchanges where both parties gain value or benefit from the transaction.

No-Tax Equilibrium

A market situation where goods or services are exchanged without the imposition of taxes, leading to an unaltered allocation of resources.

Elastic Demand

The case in which the price elasticity of demand is greater than 1.