Which Argument Against Enacting Workplace Safety Regulations Can Be Justified

question 102

Multiple Choice

Which argument against enacting workplace safety regulations can be justified using economic tools or observation?

• A)Compensating wage differentials give firms an incentive to provide safety features.
• B)Historically,employers have provided safe working environments without regulation.
• C)According to the cost-benefit principle,the marginal cost of safety virtually always exceeds the marginal benefit.
• D)Insurance will cover most workplace injuries,so the safety regulations are unnecessary.

---

Definitions:

Externalities

Financial consequences for unrelated third parties, which can manifest as either positive or negative effects.

Perfectly Competitive

Describes a market structure where many firms sell identical products, there are no barriers to entry, and no single buyer or seller can influence the market price.

Allocate Resources

The process of distributing available resources, such as labor, capital, and land, among various uses to fulfill societal needs and wants.

Consumer Surplus

The deviation between the monetary amount consumers are willing to pay for a good or service and the monetary amount they actually pay.