The Statement "Risk Requires Compensation" Implies That People

question 31

Multiple Choice

The statement "risk requires compensation" implies that people:

• A) do not take risk.
• B) only accept risk when they absolutely have to.
• C) will only accept risk when they are rewarded for doing so.
• D) avoid risk at all cost.

---

Definitions:

Dominance Hierarchies

Social structures in groups where members are ranked in terms of power, influence, or access to resources.

Interpersonal Complementarity Hypothesis

A theory suggesting that individuals are more satisfied in relationships where their behaviors are complementary to the behaviors of others, especially in terms of dominance and submission.

Iron Law Of Oligarchy

The theory that all forms of organization, regardless of how democratic they are at the start, will eventually and inevitably develop oligarchic tendencies.

Status Generalization

The process by which individuals extrapolate others' broader social status based on limited or irrelevant information.