According to the textbook, as it is currently administered, the workers' compensation system in the United States:
A)does not adjust employers' premiums fully to reflect injury rates.
B)produces the optimal amount of workplace safety.
C)sets premiums that are too low for firms with low injury rates.
D)sets premiums that are too high for firms with high injury rates.

Question

Quizplus · Accepted Answer

The textbook states that the workers' compensation system in the United States does not adjust employers' premiums fully to reflect injury rates. This means that firms with high injury rates are not paying enough in premiums to cover the costs of their workers' compensation claims, while firms with low injury rates may be overpaying for their coverage. This suggests that the system is not producing the optimal amount of workplace safety and is therefore not working as effectively as it could be.

According to the Textbook, as It Is Currently Administered, the Workers