One problem with using worker willingness-to-pay figures to set safety standards is that
A) the utility of other parties may be affected by worker safety levels.
B) workers' preferences cannot be translated into monetary terms.
C) the use of safety equipment will decrease workers' utility.
D) willingness-to-pay figures usually decrease over time.

Question

Quizplus · Accepted Answer

The utility of other parties, such as families of workers or society at large, may indeed be affected by worker safety levels, which is not captured when only considering workers' willingness-to-pay figures for safety standards. This approach overlooks the broader impacts and benefits of safety standards on others beyond the individual workers.

One Problem with Using Worker Willingness-To-Pay Figures to Set Safety