10. Problems and Applications Q10 High-income people are willing to pay more than lower-income people to avoid the risk of death. For example, they are more likely to pay for safety features on cars. True or False: One reason a rich town may put in a traffic light while a poor town does not is that the rich town may value a human life more highly in its cost-benefit analysis. True False

True

True

Explanation:

Cost benefit analysis is used in decision making. This involves weighting the cost of doing something to the benefit derived from it which can be monetary or in this case non-monetary.

The cost benefit analysis is subjective and in our case it differs from lower-income people to that of higher - income people. A rich town may value a human life more highly in its cost-benefit analysis and would be willing to pay more than  lower-income people to avoid the risk of death.

answer; ///(c) i believe its it ignores cash flows following the payback period;

answer; the correct answer is (direct foreign investment);