Smoking in the Workplace Creates the Following Costs for an Employer

question 31

Multiple Choice

Smoking in the workplace creates the following costs for an employer EXCEPT for

• A)significantly greater risk of occupational accidents.
• B)higher supplementary health care/medical insurance costs.
• C)higher disability insurance costs.
• D)increased attendance.
• E)reduced productivity.

---

Definitions:

Perfect Substitutes

Goods that can be used in place of each other with no loss of utility or preference by consumers.

Coke and Pepsi

Refers to a classic example of duopoly in economics, representing competition between two dominant firms in a market.

Perfect Complementarity

Refers to a situation in consumer choice theory where two goods are always consumed together in fixed proportions because one is perfectly complementary to the other.

Engel Curve

A graph showing the relationship between the income of a consumer and the amount of a good that the consumer buys, illustrating how spending on a good varies with income.