1] Value of a statistical life (VSL):

On average, Canadians work for 45 years in their lifetime. If the average income is $60,000 per year and the discount rate is 3%, the implied VSL (to the nearest integer, no decimal place) is equal to ________. This approach to find VSL is likely to be an _________-estimation of the social value of life because ___________.

a. $1,471,123; under; it excludes the value of leisure

b. $2,000,000; over; it excludes the costs of pollution on health

c. $713,984; under; it excludes the value of satisfaction from work

d. $7,354,040; over; it excludes the costs of crime and substance abuse

2] Value of a statistical life (VSL):

Studies have found that people who work in the transportation industry have the highest on-the-job fatality rates. At the top of this list are long-distance truck drivers. Other occupations include roofers, loggers, farmers, law enforcement officers and emergency room nurses. You looked up the data and found that entry-level long-distance truck drivers earn an average hourly wage of C$23 while an entry-level emergency room nurse earns C$60. What can you conclude?

a. The truck driver is paid no wage premium based on risks because he/she earns less than the nurse.

b. The truck driver could be paid a wage premium based on risks but can still earn less than the nurse due to different job qualifications.

c. If a Food Panda short-distance delivery driver in Montreal earns $25 an hour, the wage premium based on risks for the truck driver is $2.

d. None of the answers above is correct.