Pat has just graduated from college and has two job offers.One pays $45,000 and requires that Pat supervise employees doing construction work on a busy highway.The other is an office job that pays $40,000.Chris has received the same offers from the same firms.Pat values the added safety of the office job at $6,000 per year and Chris values the added safety of the office job at $3,000 per year.
Pat is more ____ than Chris.

Question

Quizplus · Accepted Answer

Pat's valuation of safety at $6,000 per year is higher than Chris's valuation of safety at $3,000 per year, indicating a greater aversion to risk. Therefore, Pat is more risk-averse than Chris.

Pat Has Just Graduated from College and Has Two Job