This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Does the principle of optimization imply that people always make the best choices? What will be ... (Read 102 times)

ssal

  • Hero Member
  • *****
  • Posts: 572
on: Jun 29, 2018
Does the principle of optimization imply that people always make the best choices?
 
  What will be an ideal response?

Question 2

What is meant by the value of a statistical life? Why is it calculated?How is it used by policymakers?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

gcook

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Jun 29, 2018
Answer to Question 1

Optimization is a good description of almost all human behavior, but this doesn't mean that people are always perfect calculators. Our decisions are roughly equal to the choices we would make if we always optimized. To an economist, optimization is a good approximation of the decisions that people make.

Answer to Question 2

The value of a statistical life is the implied value of life from individual choices between options with different but small probabilities of fatality risk.Put another way, it is the money value of a human life saved, or the economic value of reducing risks to life through policy decisions. This can be inferred from the decisions of governments and consumers.However, the value of a statistical lifeis not intended to be seen as a price tag on human life. Rather, it is useful to policymakers in making decisions about which public projectsroads, bridges, damsto undertake.As such, it can be employed as the basis of cost-benefit analysis, as well as in deciding how much people need to be compensated for certain risks that they take.
A-head: ECONOMIC TOOLS TO VALUE HUMAN LIFE
Concept: Value of a statistical life


ssal

  • Hero Member
  • *****
  • Posts: 572
Reply #2 on: Jun 29, 2018
Thank you


gcook

  • Sr. Member
  • ****
  • Posts: 343
Reply #3 on: Jun 29, 2018
No problemo


« previous next »
 

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

This one might make you look twice This one might make you look twice
In the 1800s, most people were poor, and formal education beyond the first several grades was a ... In the 1800s, most people were poor, and formal education beyond the first several grades was a ...
For millions of people, the United States represents a land of opportunity and freedom from ... For millions of people, the United States represents a land of opportunity and freedom from ...
Despite the globe’s vast social change, people all over the world continue to make race a ... Despite the globe’s vast social change, people all over the world continue to make race a ...
The Principle of Falsifiability The Principle of Falsifiability
Survivorship curves for people in the United States in the early 20th and early 21st centuries Survivorship curves for people in the United States in the early 20th and early 21st centuries
Video: Generalized life cycles for plants and animals Animation

For a complete list of videos, visit our video library