The more ________ the individual, the more he/she requires a _______compensating wage differential in return for accepting a riskier work environment.
A) risk-averse; larger
B) risk-neutral; smaller
C) risk-averse; smaller
D) risk-loving; larger
E) risk-neutral; larger

Question

Quizplus · Accepted Answer

Risk-averse individuals require a larger compensating wage differential to accept a riskier work environment because they prefer to avoid risk, thus demanding higher compensation to take on additional risk.

The More ________ the Individual, the More He/she Requires a _______Compensating

The More __ the Individual, the More He/she Requires a _Compensating