If the risk associated with a particular outcome is ________, or the value of a particular outcome is ________, then cost-benefit analysis might lead people to accept too little risk.
A) overestimated, overestimated
B) overestimated; underestimated
C) underestimated; overestimated
D) underestimated; underestimated

Question

Quizplus · Accepted Answer

If the risk is overestimated, people might be too cautious, and if the value of an outcome is underestimated, they might not see the full benefits, leading to accepting too little risk.

If the Risk Associated with a Particular Outcome Is ________