An increase in safety standards does not directly raise the wage of employees, however a neoclassical analysis of labour markets suggests it will decrease total employment.What mechanism drives this result?
A)an increase in safety standards leads to more people wishing to enter the labour force
B)higher safety costs decrease the value of the marginal product of labour, leading to a downward shift in demand
C)higher safety costs decrease the value of the marginal product of labour, leading to an upward shift in demand
D)the labour supply curve shifts inwards in response to safer working conditions

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The Answer of An increase in safety standards does not directly raise the wage of employees, however a neoclassical analysis of labour markets suggests it will decrease total employment.What mechanism drives this result?
A)an increase in safety standards leads to more people wishing to enter the labour force
B)higher safety costs decrease the value of the marginal product of labour, leading to a downward shift in demand
C)higher safety costs decrease the value of the marginal product of labour, leading to an upward shift in demand
D)the labour supply curve shifts inwards in response to safer working conditions

An Increase in Safety Standards Does Not Directly Raise the Wage