Assuming That Workers Are Fully Aware of Their Working Conditions

question 13

Multiple Choice

Assuming that workers are fully aware of their working conditions, which of the following will not happen when the government mandates pollution control to protect workers' health?

• A)Worker utility will increase.
• B)Employment will decrease.
• C)The air in workplaces will become cleaner.
• D)Firms with low-profits before the mandate may shut down or exit the industry.
• E)Wages will fall at all but the cleanest firms.

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Definitions:

Capital

Resources or assets that are used in the production of goods and services, including physical assets like machinery and buildings, and intangible assets like patents.

Fixed-Proportion

A production process in which the inputs are used in fixed ratios, with no substitution possible between them.

Perfect Substitutes

Goods or services that can be used in exactly the same way, where the consumer is indifferent between the two and will choose the cheaper one.

Scale

The size, extent, or level of something, typically used in the context of production or operations to indicate magnitude or capacity.