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

question 156

Multiple Choice

Suppose that policymakers are doing a cost-benefit analysis on a proposal to add traffic barriers to a motorway. These barriers will reduce the number of fatal accidents on this motorway. Which of the following statements is true?

• A) the benefits will always exceed the cost because reducing the risk of accidents is so valuable
• B) people will exaggerate the benefits of traffic barriers in a questionnaire on their values
• C) it is not possible to put a dollar value on someone's life
• D) the benefits will never exceed the cost, because people show they don't care about accident risks by buying unsafe cars

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