Question

As the mayor of a local town, Newman has the power to repeal workplace safety laws. How would repealing all workplace safety laws affect the wages of kindergarten teachers who work in relatively safe jobs at the local school?

a. It would reduce teachers wages because of less-severe negative compensating differentials.

b. It would increase teachers wages because of less-severe negative compensating differentials.

c. It would reduce teachers wages because of more-severe negative compensating differentials.

d. It would increase teachers wages because of more-severe negative compensating differentials.

e. It would have little effect on teachers wages because of a lack of negative compensating differentials.

Answer

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