Compared to those people who prefer to play it safe, individuals who are more comfortable taking risks are more likely to reach the top of the income distribution, or to hit the bottom, ceteris paribus.

Question

Quizplus · Accepted Answer

Risk-takers are more likely to experience extreme outcomes, both positive and negative, because they often pursue opportunities with higher potential rewards, which also come with higher potential risks. This can lead to significant success or failure compared to those who are more risk-averse and opt for safer, more predictable paths.

Compared to Those People Who Prefer to Play It Safe