Economists can get some sense about what value people put on their own lives by:
A) evaluating their total asset portfolio
B) studying the risk they are willing to take in their investment decisions
C) comparing wages in risky and less risky occupations, controlling for other determinants of wages
D) None of the above will lead to sensible results

Question

Quizplus · Accepted Answer

By comparing wages in risky and less risky occupations, controlling for other determinants of wages, economists can get an idea of how much people value their own lives. This is because individuals who work in more dangerous occupations, such as logging or construction, are compensated with higher wages compared to those in less risky jobs. The higher wage can be interpreted as the amount of money the individual is willing to accept in exchange for taking on additional risks that could potentially shorten their life.

Economists Can Get Some Sense About What Value People Put