Question 2. a. Define Compensating Variation and Equivalent Variation and show how they are related. b. Which one is the appropriate measure of the "value of life" in a risky project ? c. Define CV,2to be the compensating variation for a movement from state 1 to risky state 2 for individual i. If a worker might die in state 2 what we expect the value of CV,2 to be infinite, so no risky project entailing the possibility of death would be undertaken. How do you resolve this apparent dilemma