Assume that running in a marathon increases a person's risk of dying from almost negligible to about 1 in 50,000. If people know this risk and still choose to run marathons, economists would most likely conclude that people:
A) are irrational.
B) place no value on their lives.
C) place a finite value on their lives.
D) have self-control problems.

Question

Quizplus · Accepted Answer

Economists would conclude that people place a finite value on their lives because they are willing to accept a small risk of death in exchange for the benefits they perceive from running a marathon, indicating a rational trade-off.

Assume That Running in a Marathon Increases a Person's Risk