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If the Workers' Compensation Premium Accurately Reflected the Social Costs

Question 97
Multiple Choice

If the workers' compensation premium accurately reflected the social costs of workplace injuries,then A) many firms would be forced out of business. B) the premium would function like a tax on injuries. C) injury rates would rise. D) firms would become less capital intensive.

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Q 98
The growth of lawsuits seeking compensation from firms when a worker is injured should serve to A) reduce the firm's incentive to improve safety. B) increase the worker's incentive to get injured. C) increase the firms' incentive to improve safety. D) reduce moral hazard.
Q 99
The system of government insurance that pays benefits to workers injured on the job is referred to as A) social security. B) welfare. C) OSHA. D) workers' compensation.
Q 100
To achieve the socially optimal workplace injury rate, A) strict government regulation is necessary. B) workers must be educated about potential safety risks at work. C) workers' compensation premiums must accurately reflect the firm's injury rate. D) certain high risk jobs must be eliminated.
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