Q2.9 'It is often impossible to obtain precise information about the pattern of future revenues, costs and interest rates. Therefore, the process of economic optimization is futile.' Discuss this statement.

Q2.10 In estimating regulatory benefits, the Environmental Protection Agency (EPA) and other government agencies typically assign a value of approximately $6 million to each life saved. What factors might the EPA consider in arriving at such a valuation? How would you respond to criticism directed at the EPA that life is precious and cannot be valued in dollar terms?