Holding all other factors constant,workers who are strongly averse to risk will tend to have jobs paying
A) average wages.
B) below average wages.
C) above average wages.
D) at least average wages.

Question

Quizplus · Accepted Answer

Workers who are strongly averse to risk are less likely to take on high-risk, high-reward jobs that offer above-average wages. Instead, they prefer more stable and secure jobs, which are more likely to offer below-average wages. Therefore, holding all other factors constant, workers who are strongly averse to risk will tend to have jobs paying below-average wages.

Holding All Other Factors Constant,workers Who Are Strongly Averse to Risk