How Do Economists Estimate the Value of a Statistical Life

question 3

Multiple Choice

How do economists estimate the value of a statistical life?

• A) The value of a statistical life is equal to the slope of the hedonic wage locus,so economists estimate the hedonic wage locus.
• B) The value of a statistical life is modeled using survey information from large samples of representative workers.
• C) The value of a statistical life is determined by the median wage.
• D) The value of a statistical life is equal to the intersection of the hedonic wage locus and the representative workers' iso-profit curve,so economists estimate the hedonic wage locus.
• E) The value of a statistical life is estimated using the point of tangency between workers' iso-profit curves and firms' job package offers.

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Definitions:

Genetic Diversity

Variety among members of a population.

Ecosystem Interactions

These are the dynamic relationships and exchanges between organisms and their environment within an ecosystem, including predation, competition, and mutualism.

Pollution

Any environmental change that adversely affects the lives and health of living organisms.

Extinctions

refer to the complete disappearance of a species from Earth, often caused by environmental changes, human activities, or other factors.