Approaches to asking cv questions about the streams

Assignment Help Macroeconomics
Reference no: EM131284504

A worker, who is typical in all respects, works for a wage of $30,000 per year in a perfectly safe occupation. Another typical worker does a job requiring exactly the same skills as the first worker, but in a risky occupation with a known death probability of 1 in 1,000 per year, and receives a wage of $36,000 per year. What value of a human life for workers with these characteristics should a cost-benefit analyst use?

The construction of a dam that would provide hydroelectric power would result in the loss of two streams: one that is now used for sport fishing, and another that does not support game fish but is part of a wilderness area.

a. Imagine that a CV method is used to estimate the social cost of the loss of each of these streams. Would you be equally confident in the two sets of estimates? Why?

b. Consider two general approaches to asking CV questions about the streams. The first approach attempts to elicit how much compensation people would require to give up the streams. The second approach attempts to elicit how much people would be willing to pay to keep the streams. Which approach would you recommend? Why?

Reference no: EM131284504

Questions Cloud

Write an executive summary of the article : Write an Executive Summary of the article.- write to a business audience either for the company you currently work for.
Long-term effects of deficit spending : The government can increase GDP in the short run by running a budget deficit. What are some long-term effects of deficit spending?
Description of healthcare industry key players : Part A: Provide a clear and comprehensive list and description of healthcare industry key players/leaders describing how they impact healthcare economics.
Complete the given methodology in a flow : Complete the given methodology in a flow.- The topic for the Methodology is: "Juvenile Justice System : Success or Failure".
Approaches to asking cv questions about the streams : Consider two general approaches to asking CV questions about the streams. The first approach attempts to elicit how much compensation people would require to give up the streams. The second approach attempts to elicit how much people would be will..
Conduct research using the argosy online library : Conduct research using the Argosy online library, your text book and the Internet regarding the differences in culture, management styles, and communication strategies between the U.S. and Cambodia.
Natural rate of unemployment for the same reservation wage : i) If u is 15%, what is the reservation wage as determined by the wage setting equation? ii) What is the real wage? iii) Suppose the mark-up increases to 10%. What happens to the naturalrate of unemployment for the same reservation wage? iv) Is the w..
Benefits of joining and the process for enrollment : Whether you're graduating this year or a few years from now, you may want to join a local alumni organization. Write an email to the head of the alumni association in the area you might live. Include specific questions about membership fees, club ..
What is the size of the us civilian labor force : Go to the US Bureau of Labor Statistics at (http://stats.bls.gov) or check othersources and get the following statistics for January 2007 and January 2013 (Youwill find it in a file called employment status of civilian populations; Look in thenot ..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Determine the desirability of the investment

The Charlotte Bobcats, a professional basketball team, has been offered the opportunity to purchase the contract of an aging superstar basketball player from another team. The general manager of the Bobcats wants to analyze the offer as a capital ..

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  Determine return on investment

ACME Corporation consists of 250 grocery stores throughout the Midwest. At the starting of 2008 its statement of net worth showed the following data,

  Explain what happens to price and quantity of oil

Congressional action taht allows oil drilling operation in more areas of the Alaska preserve.

  How many people really understand this issue

In the very real sense of the concept - When you vote for a presidential candidate you are really voting to instruct the electors from your state to cast their votes for the same candidate. The candidate who wins the popular vote in a state wins a..

  What is the effect of health insurance on health

What is the effect of health insurance on health - Define the counterfactual outcomes Y0i and Y1i.

  What is the consumer price index

What is the Consumer Price Index (CPI) and How has the CPI behaved since the year 2000? What have been the causes of these changes? In your response, include a graph of the CPI for this period and cite your source.

  How can we measure our nations economic performance

How can we measure our nation's economic performance? What are the two different approaches? What factors make it difficult to calculate GDP accurately? How does GDP fail to measure economic welfare accurately?

  Analyze events using the supply and demand model

During the late 1980' and early 1990's, economic reforms initiated by Soviet President Mikhail Gorbachev began to raise consumer incomes; but the Soviet government continued to impose price ceilings on basic goods like food, clothing and household..

  Economic profile of the airline industry

Provide an economic profile of the Airline industry. Include an industry profile, Industry size data and current developments and trends within the industry.

  Describe when and why central banks buy either their own

describe when and why central banks buy either their own currency or the currency of another nation in an effort to

  1 nbsp what is the distinction between net investment and

1. nbsp what is the distinction between net investment and gross investment? which is the total amount spent on

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd