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If Workers' Compensation Premiums Reflected the Full Social Cost of the Injuries

Question 2

Multiple Choice

If workers' compensation premiums reflected the full social cost of the injuries sustained by each employer's workers, then this would lead to:


A) fewer workplace injuries than is socially optimal.
B) more workplace injuries than is socially optimal.
C) the socially optimal number of workplace injuries.
D) the elimination of workplace injuries.

Correct Answer:

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