homework_5_compensating_wage_differentials

homework_5_compensating_wage_differentials -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
University of California, Davis Dr. Janine L.F. Wilson Department of Economics Summer Session II 2009 Economics 151a Homework 5 Compensating Wage Differentials 1. There is a mythical town in the United States called Dirkville where 100,000 people live and there are no visitors or out-of-town guests. The average salary for the people of Dirkville is $50,000. a. An intersection on a busy street in a town called Dirkville is governed by stop signs for the traffic coming from two of the four directions. Each year, 2 of the 100,000 people that live in Dirkville are killed as a result of accidents in the intersection. Studies have shown that if a stoplight was installed in the intersection the death rate would fall to 1 in 100,000 people that live in Dirkville. Installing the stoplight would cost each citizen of Dirkville 1% of their salary in time lost and maintenance. What would be the minimum statistical value of a life in Dirkville have to be if the city government chose to put in a stoplight? 2.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/02/2009 for the course ECON 151A taught by Professor Miller during the Summer '06 term at UC Davis.

Page1 / 2

homework_5_compensating_wage_differentials -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online