Final answer:
Government regulators determine the reasonableness of proposed regulations like safety systems based on costs not exceeding estimated benefits, such as $3 million per life saved in the context of transportation.
Step-by-step explanation:
Government regulators, such as the U.S. Department of Transportation, use cost-benefit analyses to determine if the benefits of proposed regulations justify the related costs. For instance, when assessing safety systems required in cars or airplanes, the regulators consider the proposed rules to be reasonable if the estimated cost per life saved does not exceed $3 million. This approach to budgeting for minimum viable project cost ensures that only the regulations with sufficient benefits to outweigh the costs are approved. This methodology aligns with the principles of an economic and pragmatic decision-making process that values human life while also considering fiscal responsibility.