Workers Do Not Know the Safety Records at Individual Firms;

question 90

Multiple Choice

Workers do not know the safety records at individual firms; they only know industry averages.As a result,

• A) each firm tries to outdo each other in making safety improvements.
• B) each firm has the incentive to be the safest in its industry.
• C) the equilibrium level of safety is less than optimal.
• D) the optimal level of safety is achieved.

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Definitions:

Termination without Cause

The ending of an employment or contractual relationship without the need to prove wrongdoing or failure to perform duties by the terminated party.

Human Rights Laws

Legal standards created to protect individuals from violations regarding their basic freedoms and rights.

Occupational Health

The study and practice of preventing and managing workplace illnesses and injuries to promote the health and well-being of workers.

Safety Laws

Regulations and statutes implemented to ensure safe working conditions and to protect the health and safety of workers and the public.