Which of the Following Descriptions of Workers' Compensation Schemes Is

question 5

Multiple Choice

Which of the following descriptions of workers' compensation schemes is true?

• A)Compensation for partial disability is based on the difference between pre-accident earning capacity and post-accident spending capacity.
• B)Workers who suffer a partial,though temporary,incapacity are paid the same as they were prior to the accident during the length of their recovery.
• C)If a worker is killed during employment,no money comes out of the accident fund.
• D)Worker compensation schemes are funded through employer on an opt-in basis.
• E)Worker compensation funds are funded though compulsory contributions from employers.

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Definitions:

Socially Optimal Level

The level of production or activity where the social benefits of consuming a good equal the social costs of producing it, often considered ideal from a societal perspective.

Per-unit Subsidy

A financial aid provided by the government for each unit of a product produced or sold.

Private Market-clearing

The process by which supply and demand balance out at a price where the quantity supplied equals the quantity demanded in a private marketplace, without excess surplus or shortage.

Emissions Taxes

Taxes levied on the emission of pollutants, aimed at reducing environmental harm by incorporating the cost of pollution into the market price.