Question
23. The government currently spends $2B on highway maintenance and $1B on asbestos removal per year. Saving another statistical life through highway maintenance programs is
23. The government currently spends $2B on highway maintenance and $1B on asbestos removal per year. Saving another statistical life through highway maintenance programs is estimated to cost $10M, whereas saving another life through asbestos removal programs is estimated to cost $20M. Assume the only effect either program has is on lives saved. Then the government should (a) reallocate funding from highway maintenance to asbestos removal until expenditures are equalized across programs. (b) reallocate funding from highway maintenance to asbestos removal until cost to save another life is equalized across programs. (c) reallocate funding from asbestos removal to highway maintenance until expenditures are equalized across programs. (d) reallocate funding from asbestos removal to highway maintenance until cost to save another life is equalized across programs.
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