When the Government Imposes Safety Regulations on a Particular Job

Multiple Choice

When the government imposes safety regulations on a particular job or labor market, what is most likely to happen?

A) Wages will increase.
B) Utility will increase if workers are able to correctly evaluate working conditions.
C) Wages will fall but utility will increase if workers misperceive on-the-job risk.
D) Employment will increase.
E) Firms that used to offer bad working conditions will be required to shut down.