Suppose That the Cost of Installing an Overhead Pedestrian Walkway

question 45

Multiple Choice

Suppose that the cost of installing an overhead pedestrian walkway in a college town is $50,000.If the walkway is expected to reduce the risk of fatality by 0.5 percent and the cost of a human life is estimated at $5 million,what would the town do

• A)The town would install the walkway because the estimated benefit is twice the cost.
• B)The town would install the walkway because the estimated benefit equals the cost.
• C)The town would not install the walkway since the cost is twice the estimated benefit.
• D)The town would install the walkway since the cost of even a single life is too great.

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Definitions:

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