The Purpose of "Experience Rating" Under Workers' Compensation Legislation Is

question 22

Multiple Choice

The purpose of "experience rating" under workers' compensation legislation is to

• A)offer lower rates to firms with less experienced workers.
• B)give firms an incentive to engage in safer practices.
• C)offer lower rates to firms with more experienced workers.
• D)create additional jobs in workers' compensation branches.
• E)ensure that firms in high- risk industries pay higher WC premiums.

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Definitions:

Unemployment Rate

The statistic representing the percentage of the labor force that is out of work but seeking employment.

World War II

A global conflict lasting from 1939 to 1945, involving most of the world's nations including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.

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A complex set of human relationships interacting in many ways within a community or society.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.