2199EconomicsMedium
Suppose that requiring motorcycle riders to wear helmets reduces the probability of a motorcycle fatality from 0.3 percent to 0.2 percent over the lifetime of a motorcycle rider and that the cost of lifetime supply of helmets is Rs5000. It is efficient for the government to require riders to wear helmets if human life is valued at?
ARs100 or more
BRs500 or more
CRs 150 or more
DRs 500,000 or more
ERs50,000 or more
Correct answer
D. Rs 500,000 or more
Explanation
The correct answer is Rs 500,000 or more.