162k views
3 votes
The more ____________ the individual worker, the more he/she requires a ___________ compensating wage differential in return for accepting a riskier work environment. a. risk-loving; larger

b. risk-averse; larger
c. risk-averse; smaller
d. risk-neutral; smaller

User Deafjeff
by
8.3k points

1 Answer

5 votes

Final answer:

The more risk-averse the individual worker, the more he/she requires a smaller compensating wage differential in return for accepting a riskier work environment. The correct answer is c. risk-averse; smaller.

Step-by-step explanation:

The correct answer is c. risk-averse; smaller.

According to the given information, the more risk-averse the individual worker is, the more they require a smaller compensating wage differential in return for accepting a riskier work environment. This means that workers who are more risk-averse are not willing to take on as much risk in their work and therefore require a smaller increase in wages to compensate for the risk.

User Lucas Emerick
by
7.4k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories