Based on the type of analysis described in the Case in Point on Preventing Oil Spills, an economist might reasonably argue that too few people die in airplane crashes if:
A) the marginal cost of preventing airplane crashes was less than the marginal benefit of preventing them.
B) the marginal benefit of preventing airplane crashes was less than the marginal cost of preventing them.
C) he or she were nuts; no reasonable economist would make such a statement because even though zero airplane crashes are an unlikely outcome, the efforts to prevent them to the greatest extent possible are justified because human lives are at stake.
D) both A and B are true.

Question

Quizplus · Accepted Answer

The analysis described in the Case in Point on Preventing Oil Spills uses cost-benefit analysis to determine the optimal level of pollution prevention. This approach considers the marginal cost and marginal benefit of additional pollution prevention measures. Similarly, an economist may argue that too few people die in plane crashes if the marginal benefit of preventing crashes is less than the marginal cost of preventing them. In this case, it would be more efficient to allocate resources towards other safety measures where the marginal benefit outweighs the cost.

Based on the Type of Analysis Described in the Case