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How Do Economists Estimate the Value of a Statistical Life

Question 11

Multiple Choice

How do economists estimate the value of a statistical life?


A) The value of a statistical life is equal to the slope of the hedonic wage locus,so economists estimate the hedonic wage locus.
B) The value of a statistical life is modeled using survey information from large samples of representative workers.
C) The value of a statistical life is determined by the median wage.
D) The value of a statistical life is equal to the intersection of the hedonic wage locus and the representative workers' iso-profit curve,so economists estimate the hedonic wage locus.
E) The value of a statistical life is estimated using the point of tangency between workers' iso-profit curves and firms' job package offers.

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