When Graphing a Worker's Indifference Curves in Probability of Injury

question 30

Multiple Choice

When graphing a worker's indifference curves in Probability of Injury (x-axis) versus Wage (y-axis) space, Al's indifference curves are steeper than Pete's indifference curve. In this case:

• A)Al is more risk-loving than Pete.
• B)Al requires a greater wage increase than Pete in order to willingly take on more risk.
• C)Al will end up receiving a higher wage than Pete.
• D)Both are risk neutral.
• E)Al will only accept a job if it offers no risk of injury.

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