Write five to six (5-6) page paper in which you:
(Note: Refer to Review Question 8 located at the end of Chapter 5 for criteria 1-3.)
Determine the following before deciding a prescription: (a) maximize effectiveness at
the least cost; (b) maximize effectiveness at a fixed cost of $10,000; (c) achieve a
fixed-effectiveness level of 6,000 units of service at a fixed cost of $20,000; (d)
maximize net benefits, assuming that each unit of service has a market price of $10;
(e) maximize the ration of benefits to costs, assuming that each unit of service has a
market price of $10-
Determine which of the two main programs (Program I and Program II) should be
selected under each of these criteria- Justify you position-
Describe the conditions under which each criterion may be an adequate rneasue of
the achievement of objectives-
(Note: Refer to the Demonstration Exercise at the end of Chapter 5 for criteria 4-9-)
Determine the assumptions that govern estimates of the value of time lost diving,
indicating which assumptions Of any) are more tenable than others- Justify you
position-
Determine the best way to estimate the value of time- Justify you position-
Determine the best way to estimate the cost of a gallon of gasoline- Justify you
position-
Determine the more reliable method to estimate diving speeds and miles per gallon
by using (a) official statistics on highway traffic from the Environmental Protection
Agency or by using (b) engineering studies of the efficiency of gasoline engines by
the Department of Energy- Discuss any consequences of using one souce rather than
another. Justify you position-
Estimate the value of a life saved- Justify you position-
Determine which policy is preferable, (a) the 55-mph speed limit or (b) the 65-mph
limit- Justify you position-
lnclude at least two (2) peer-reviewed references (no more than five [5] years old) from
material outside the textbook to support you views- Note: Appropriate peer-reviewed
