The Hedonic Method of Valuing a Human Life

question 25

Multiple Choice

The hedonic method of valuing a human life:

• A)is based on the "price" of accepting risk as revealed in compensating wage differentials
• B)estimates the present value of the amount of wage and fringe benefits that would have been made had the worker not been killed
• C)typically results in a value of between $500,000 and $700,000 per life lost
• D)typically yields lower estimates than does the human capital approach

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