Workers who dislike risk
A)prefer to be paid monthly rather than weekly or daily.
B)prefer a piece-rate compensation system to a salary system.
C)prefer a salary system to a commission compensation system.
D)prefer to be paid a salary rather than a wage.

Question

Quizplus · Accepted Answer

Workers who dislike risk prefer a salary system to a commission compensation system. This is because the commission system is directly tied to performance and sales, which can be unpredictable and risky. A salary system, on the other hand, provides a stable and predictable income, which is preferred by risk-averse workers. The other options are not directly related to risk aversion.

Workers Who Dislike Risk