Positions that involve a considerable amount of personal risk
A)typically have negative compensating wage differentials
B)usually have better fringe benefits for employees
C)have higher demand by firms
D)pay lower wages
E)typically have positive compensating wage differentials

Question

Quizplus · Accepted Answer

Positions that involve a considerable amount of personal risk are often less desirable, so firms must offer higher wages to entice employees to take on these roles. This is known as a compensating wage differential. In the case of high-risk positions, the compensating wage differential is typically positive, meaning that these jobs pay higher wages than comparable, low-risk positions.

Positions That Involve a Considerable Amount of Personal Risk