Question

Consider two safety features found on modern cars: rear-view backup cameras and front-impact avoidance systems. Both save lives, but rear-view backup cameras largely save the lives of very young children while front-impact avoidance systems save the lives of older drivers.

A. In a benefit-cost analysis, should these lives saved be values identically or differently? Explain why.

B. Why is your answer from part A important for benefit cost analyses of social distancing measures meant to reduce deaths from COVID-19?

Answer 1

The detail explanation of above is mentioned in below image