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An engineer failed to allow for a windstorm during construction of a building. Collapse occurred while a crew was trying to add bracing to the structural frame. No one was injured, but one worker was killed. Compensation to the worker's family for lost income will be made using a 7% interest rate. The worker was 25 and had a salary of $22,000. Assume retirement at age 65 and an annual $1000 salary increase. What is the present value of the family's lost income? Is this a realistic estimate of the value of a human life?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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