Suppose That Policymakers Are Doing Cost-Benefit Analysis on a Proposal

question 79

Multiple Choice

Suppose that policymakers are doing cost-benefit analysis on a proposal to add traffic barriers to divide the flow of traffic in an effort to increase safety on a given highway.How can policymakers evaluate the costs and benefits of this proposal

• A)The costs cannot be measured in the same units as the benefits.
• B)Policymakers need to calculate the flow of the traffic.
• C)Quantification of the benefit received from saving a human life is a straightforward process.
• D)Policymakers must put a dollar value on human life.

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Definitions:

Euros

The official currency of 19 out of the 27 European Union countries, which together make up the Eurozone.

Pounds

A unit of weight commonly used in the United States and British imperial system, equivalent to 0.453592 kilograms.

Dollar Depreciates

A decrease in the value of the US dollar relative to other currencies, leading to higher prices for imports and cheaper exports.

Yen Appreciates

An increase in the value of the Japanese yen in comparison to another currency in the foreign exchange markets.