If government regulations make a certain job less dangerous, then we'd expect that the supply of labor for that job would

A) increase, which by itself would raise the wage for that job.
B) increase, which by itself would reduce the wage for that job.
C) decrease, which by itself would raise the wage for that job.
D) decrease, which by itself would reduce the wage for that job.

Question

Syed Amer Hussain · Accepted Answer

Final Answer : B, Explanation :  When a job becomes less dangerous due to government regulations, it becomes more attractive to potential workers. This attractiveness leads to an increase in the supply of labor for that job because more people are willing to do it. According to basic economic principles, when the supply of something (in this case, labor) increases, its price (in this case, the wage) tends to decrease, all else being equal. This is because there are more workers willing to do the job, so employers can afford to offer lower wages.

Definitions

Learning Objectives

Learning Objectives

Related questions