Suppose That Policymakers Are Doing a Cost-Benefit Analysis on a Proposal

Suppose that policymakers are doing a cost-benefit analysis on a proposal to add traffic barriers to a motorway. These barriers will reduce the number of fatal accidents on this motorway. Which of the following statements is true?

A) the benefits will always exceed the cost because reducing the risk of accidents is so valuable
B) people will exaggerate the benefits of traffic barriers in a questionnaire on their values
C) it is not possible to put a dollar value on someone's life
D) the benefits will never exceed the cost, because people show they don't care about accident risks by buying unsafe cars