Highway Engineers Have Proposed Improving a Dangerous Stretch of Highway

question 51

Multiple Choice

Highway engineers have proposed improving a dangerous stretch of highway at a cost of $2 million.They expect that it will reduce the risk of someone dying in an accident over the life of the highway from 22.1 percent to 5.7 percent.The project would be worth doing as long as a human life is worth at least

• A)$114,000.
• B)$328,000.
• C)$442,000.
• D)$10 million.

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Definitions:

Circular-Flow Diagram

A graphical outline that tracks the flow of monetary resources through markets, between companies and household sectors.

Households

Economic units consisting of all individuals who live together and make joint decisions regarding consumption and other financial matters.

Businesses

Entities engaged in commercial, industrial, or professional activities with the goal of generating profits.

Product Market

A marketplace where final goods or services are offered to consumers, businesses, and the public sector.