Economists Think That the Best Way to Determine the Value

question 243

Multiple Choice

Economists think that the best way to determine the value of a human life is to

• A)evaluate the value of a person's expected earnings in the labor market.
• B)evaluate the risks people are willing to take and what they would have to be paid to take them.
• C)determine a person's accumulated wealth at the time of death.
• D)do nothing; human life is priceless.

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Definitions:

Efficient

The optimal use of resources to achieve the desired output with minimal waste, or achieving a goal in the most cost-effective way.

MSB = MSC

A condition where the Marginal Social Benefit of consuming a good equals the Marginal Social Cost of producing it, representing an optimal allocation of resources.

Public Park

A plot of land, usually owned by a government, open to the public for recreation and relaxation, without an entrance fee.

Positive Externality

A benefit received by third parties not directly involved in an economic transaction, like the environmental benefits from a public park.