The Objective Risk of an Activity Depends on How Likely

question 8

Multiple Choice

The objective risk of an activity depends on how likely some negative event is to actually occur. The subjective risk, also known as the perceived risk, depends on what the agent believes about

• A) the negative event in question.
• B) the negative event in question and is therefore impossible to measure in an objective manner.
• C) the negative event in question and is therefore widely agreed to be irrelevant for policy decisions.
• D) the negative event in question and therefore always differs from the objective risk.

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Definitions:

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