Suppose There Are Two Types of Jobs-Safe and Risky

question 3

Multiple Choice

Suppose there are two types of jobs-safe and risky. Safe jobs currently pay $10 per hour. Risky jobs currently pay $20 per hour. The government intervenes in the market, mandating that all firms offer safe jobs and pay a wage of $10 per hour. Which of the following is true?

• A) Workers who originally worked safe jobs are helped by the policy.
• B) Firms that originally offered safe jobs are hurt by the policy.
• C) Workers who originally worked risky jobs are helped by the policy.
• D) Firms that originally offered risky jobs are hurt by the policy.
• E) No one is hurt by the new policy.

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Definitions:

Tax Returns

Official documents filed with a government body, detailing income earned and taxes owed for the year.

Public Accountants

Professionals who provide accounting services to the public, including auditing, taxation, and consulting.

Private Accountants

Accountants who work exclusively for one company, handling its financial records and statements internally.

Bookkeeping

The systematic recording, organizing, and maintaining of financial transactions of a business, which is a subset of the accounting process.