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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U.S. Dollars

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