Suppose a Treacherous Stretch of Road Winds Through Deadman's Canyon

Multiple Choice

Suppose a treacherous stretch of road winds through Deadman's Canyon for 5 miles.A highway department study estimates that better lighting would reduce the traffic fatality rates as follows: $$\begin{array} { c c c } \text { Number of lights } & \text { Estimated deaths per year } & \text { Total installation cost (in millions) } \\0 & 3 & \$ 0 \mathrm {~m} \\1 & 2 & \$ 3 \mathrm {~m} \\2 & 1.5 & \$ 7 \mathrm {~m} \\3 & 1.2 & \$ 12 \mathrm {~m} \\4 & 1 & \$ 18 \mathrm {~m} \\5 & 0.9 & \$ 25 \mathrm {~m}\end{array}$$
Applying economic analysis to determine expenditures on safety improvements that save lives

A) is impossible because it is impossible to place a dollar value on human life.
B) assures that the most lives are saved at the lowest opportunity cost.
C) biases life-saving expenditures in favor of high-technology safety improvements.
D) would require that all resources be reallocated away from entertainment,education,and other non-safety uses to public safety agencies.