Suppose That All Workers Value a Safe Job $2,000 Per

question 85

Multiple Choice

Suppose that all workers value a safe job $2,000 per year more than a risky job. The cost to firms of providing a safe job is $700 per year for each worker. Firms currently pay workers $35,000 per year, without any effort to improve safety. If new firms began to offer workers $34,000 per year and safe jobs, then

• A)no workers would apply for jobs at the new firms.
• B)only low-quality workers would apply for jobs at the new firms.
• C)only injury-prone workers would apply for jobs at the new firms.
• D)all workers would apply for jobs at the new firms.

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Definitions:

Affect

A term in psychology referring to the experience of feeling or emotion.

Emotions

Complex psychological states that involve a subjective experience, a physiological response, and a behavioral or expressive response.

Well-Being

A state of comfort, health, or happiness that can be assessed at individual, community, or population levels.

Slow-To-Warm-Up

A temperament in children who are typically cautious, reserved, and introverted in new situations but become more comfortable over time.