Which argument in favor of enacting workplace safety regulations can be justified using economic tools or observation?
A)Analyzing safety in terms of monetary costs and benefits is inappropriate.
B)Concerns about relative income encourage some workers to accept risk in exchange for higher wages, leading to an inefficient outcome.
C)Economic regulations in competitive markets generally increase total economic surplus.
D)Firms that exploit workers typically earn high profits for the owners, while the workers bear the risk of injury.

Question

Quizplus · Accepted Answer

This argument highlights the concept of trade-offs between risk and compensation, which can be analyzed using economic tools such as the labor market supply and demand curves. In this case, the concern is that workers may accept risky jobs because they are paid more, which can lead to an inefficient outcome where firms do not bear the full cost of their safety practices. By enacting workplace safety regulations, the government can correct this market failure and ensure that workers and firms are held responsible for the true cost of workplace safety.

Which Argument in Favor of Enacting Workplace Safety Regulations Can