Which of the following statements are problems with workers' compensation?
A) Lost income not adequately replaced
B) Number of accidents not decreased
C) Effectiveness of cost allocation
D) All of the above

Question

Quizplus · Accepted Answer

All of the statements are problems with workers' compensation. Lost income not adequately replaced is a problem because injured workers may receive only a portion of their usual income, which can cause financial hardship. Number of accidents not decreased is a problem because employers may not have incentives to create safe working conditions if they know they will not bear the full cost of workplace accidents. Effectiveness of cost allocation is a problem because the costs of workplace accidents may not be allocated fairly between employers and workers, or between high-risk and low-risk industries, causing some groups to pay more or less than their fair share.

Which of the Following Statements Are Problems with Workers' Compensation