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Lecture 15

ECON-101 Lecture Notes - Lecture 15: Twix, Canada Day


Department
Economics
Course Code
ECON-101
Professor
Junaid Jahangir
Lecture
15

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CHAPTER 11: THE VALUE OF
LIFE
Value of life = Innite, therefore how do you calculate the marginal
benets?
Example:
Project that can reduce amount of causalities such as tra*ic lights.
Would base it on marginal benets. But how much is 1 life worth?
- People give you the value of their life when they partake in risky
choices with their life
oExample: If 1 person becomes a teacher and another
person becomes a hunter. Teacher makes $60G/ Year and
hunter makes $120G/ Year but risks his life every day. The
di*erence between the two is how much the hunter values
his life ($60G)
EXCLUDABILITY AND RIVALRY
Any good you have bought or want to buy is based on excludability
and rivalry
EXCLUDABLE
RIVAL
YES NO
YES Private Good Common
Resource
NO Club Good Public Good
Rival: Only a certain number of the good available. Consumers are
against each other.
Excludable: Price of the good. If too high, will leave the people who
cannot a*ord the good outside of the market
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