Consider a worker who faces a tradeoff between wages on the vertical axis and job safety on the horizontal axis.The less averse a worker is to risk of injury on the job,the:
A)lower is the wage earned by the worker
B)steeper is this worker's indifference curves
C)flatter is this worker's indifference curves
D)lower are the profits of this worker's employer

Question

Quizplus · Accepted Answer

A less risk-averse worker is willing to accept lower wages for less safety, indicating a flatter indifference curve as they are more willing to substitute safety for wages.

Consider a Worker Who Faces a Tradeoff Between Wages on the Vertical