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When Graphing a Worker's Indifference Curves in Probability of Injury

Question 17

Multiple Choice

When graphing a worker's indifference curves in Probability of Injury (x-axis) versus Wage (y-axis) space, Al's indifference curves are steeper than Pete's indifference curve. In this case,


A) Al is more risk loving than Pete.
B) Al requires a greater wage increase than Pete in order to willingly take on more risk.
C) Al will end up receiving a higher wage than Pete.
D) both are risk neutral.
E) Al will only accept a job if it offers no risk of injury.

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