Multiple Choice
A firm has the choice of offering "dirty" jobs that are likely to cause severe health problems for its workers or of offering "clean" jobs by installing safety equipment at a cost of $5 per hour per employee that will substantially reduce the chances of health problems.The firm will
A) install the safety equipment if workers can ascertain whether they are working a dirty or a clean job.
B) install the safety equipment if workers are willing to be paid $3 per hour less in a clean job than in a dirty job.
C) never willingly choose to install the costly safety equipment.
D) never install the safety equipment without a government subsidy to do so.
E) willingly install the safety equipment if workers are willing to be paid $7 per hour less in a clean job than in a dirty job.
Correct Answer:

Verified
Correct Answer:
Verified
Q10: A potential implication of OSHA regulation is
Q12: When the government imposes safety regulations on
Q13: Assuming that workers are fully aware of
Q17: Estimates of the compensating wage differentials associated
Q18: Ability bias can arise when estimating compensating
Q22: The equilibrium hedonic wage function is most
Q23: Under normal circumstances, the equilibrium compensation wage
Q26: In Probability of Injury (x-axis) versus Wage
Q30: Having the government regulate workplace safety would
Q30: When graphing a worker's indifference curves in