If There Is a $6,000 Wage Difference Between Two Occupations

question 13

Multiple Choice

If there is a $6,000 wage difference between two occupations and a difference in mortality rate of 0.00099 per individual, the value of a statistical life is calculated to be:

• A) $5.940 million
• B) $6.061 million
• C) $6.061 billion
• D) $5.940 billion

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Definitions:

Pension Plan

A retirement plan that requires an employer to make contributions into a pool of funds set aside for an employee's future benefit.

Defined Benefit Plan

A pension plan that promises employees a fixed annual pension benefit at retirement, based on years of service and compensation levels.

Defined Contribution Plan

A retirement plan in which the employer, employee, or both make contributions on a regular basis, and the final benefits depend on the investment's performance.

SUTA Taxes

SUTA Taxes refer to State Unemployment Tax Act taxes, which employers pay to provide unemployment benefits to laid-off workers.