ECON-101 Lecture Notes - Lecture 15: Twix, Canada Day
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CHAPTER 11: THE VALUE OF
Value of life = Innite, therefore how do you calculate the marginal
Project that can reduce amount of causalities such as tra*ic lights.
Would base it on marginal benets. 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
YES Private Good Common
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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