A method of valuing a life that estimates how much money it takes to get the typical person to bear an additional risk of death is called the
A) lost-income approach.
B) compensating differential approach.
C) daredevil approach.
D) price-is-right approach.

Question

Quizplus · Accepted Answer

The compensating differential approach values a life based on how much additional money it takes to compensate individuals for taking on additional risk of death, reflecting their willingness to accept risk for monetary compensation.

A Method of Valuing a Life That Estimates How Much