Risk-Averse Workers

question 1

Multiple Choice

Risk-averse workers

• A) have shallow wage-risk indifference curves when risk is graphed on the x-axis.
• B) are willing to work in riskier environments for a relatively low increase in the wage.
• C) are willing to accept large wage decreases in exchange for a safer work environment.
• D) never work in risky environments.
• E) are more productive than risk-loving workers.

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Definitions:

Implicit Memory Effect

The implicit memory effect refers to the influence of previous experiences on performance of a task without conscious recollection of those experiences.

Sequestering Effect

A process in which carbon and other substances are removed from the atmosphere and stored in trees, plants, or the ocean, often discussed in the context of mitigating climate change.

Primacy Effect

The inclination to recall data from the start of a list more accurately than the details following it.

Recency Effect

A memory phenomenon that involves the ability to recall the last items in a series better than those in the middle.