Suppose That All Workers Value a 1 Percent Reduction in the Workplace

question 96

Multiple Choice

Suppose that all workers value a 1 percent reduction in the workplace injury rate at $1,000 per year. The cost of reducing the injury rate by 1 percent is $200 per year for each worker. Firms currently pay $20,000 per year to workers, without any effort to improve safety. If new firms began to offer workers $19,500 and a 1 percent reduction in the injury rate, then:

• A)no workers would be willing to work at the new firms.
• B)the new firms would not be able to compete with the existing firms.
• C)workers would want to work at the new firms.
• D)only injury prone workers would want to work at the new firms.

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Definitions:

Reliable Cables

Cables that consistently perform their desired function or task without failure over a specified period.

Undercoverage

A bias in survey sampling where some members of the population are inadequately represented in the sample.

Metropolitan Areas

Large urban areas that include a central city and its surrounding suburbs, characterized by significant population density and economic activity.

East Coast

Refers to the easternmost region of the United States, comprising states along the Atlantic Ocean.