Benefit-cost Analysis. The economic valuation of human life has consequences for a broad range of management decisions in both the private and public sectors. Because resources are limited for individual companies and for society as a whole, rational decision makers cannot argue that any individual company or society should spend "whatever it takes" to save a human life.
A. Explain how public sector managers might obtain reliable life value estimates based upon actual economic behavior.
B. Describe some of the limitations of such life value estimates based upon actual economic behavior.

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The Answer of Benefit-cost Analysis. The economic valuation of human life has consequences for a broad range of management decisions in both the private and public sectors. Because resources are limited for individual companies and for society as a whole, rational decision makers cannot argue that any individual company or society should spend "whatever it takes" to save a human life.
A. Explain how public sector managers might obtain reliable life value estimates based upon actual economic behavior.
B. Describe some of the limitations of such life value estimates based upon actual economic behavior.

Benefit-Cost Analysis