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

question 48

Multiple Choice

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.

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Definitions:

Consolidated Sales

The total sales revenue of a parent company and its subsidiaries, reported as one figure in the consolidated financial statements.

Normal Markup

The standard percentage added to the cost of goods to determine their selling price.

Consolidated Sales

The total sales of a parent company and its subsidiaries, after eliminating intercompany sales, reported in the consolidated financial statements.

Normal Markup

The standard amount or percentage added to the cost of a product to determine its selling price.