(Appendix) If relative income standing and job safety both matter, then
A)a prisoner dilemma problem may result where optimality requires collusion or a law requiring cooperation.
B)a free market environment for choosing both objectives can bring optimality.
C)if no legislation occurs, workers will be unsafe and less equal in income standing.
D)workers will always be able to find the best suitable job.

Question

Quizplus · Accepted Answer

When both relative income standing and job safety matter, workers face a dilemma in which they must choose between maximizing their individual outcomes (i.e., seeking high income and risking unsafe jobs) or colluding to ensure that everyone has a safe job and a more equal income standing. Without any legal intervention or cooperation, workers may end up in unsafe jobs and have unequal income standings. Therefore, a law requiring cooperation or a collaborative effort by workers is necessary to achieve optimality in this situation. A free market environment may not be able to address both objectives simultaneously. Option D is not correct as some workers may not be able to find the best suitable job, especially in the absence of job safety regulations.

(Appendix) If Relative Income Standing and Job Safety Both Matter