Suppose That Firms That Had High Rates of Injury Had

Multiple Choice

Suppose that firms that had high rates of injury had to pay more for workers' compensation than did firms with lower rates of injury. This change would:

A) unfairly penalize innovative firms.
B) provide an incentive for firms to reduce risk of injury.
C) provide an incentive for firms to reduce expenditures on safety equipment.
D) reduce efficiency in labor markets.