A risk-averse worker gains ________ utility from a job with possible layoffs than from one with no layoffs when the two jobs have the same number of expected hours of work and wage rate.
A) more
B) less
C) at least as much
D) the same amount of

Question

Quizplus · Accepted Answer

A risk-averse worker prefers stability and certainty, thus they gain less utility from a job with possible layoffs compared to one with no layoffs, even if the expected hours of work and wage rate are the same.

A Risk-Averse Worker Gains ________ Utility from a Job with Possible