QUESTION 7 10 In the United States, OSHA doesn\'t make the taxpayers pay the cos

Question

QUESTION 7 10 In the United States, OSHA doesn't make the taxpayers pay the cost of making the jobs safer. Instead OSHA requires employers to spend the money themselves to make the jobs safer. Thus, OSHA requirements work like a tax on labor demand. What would this probably do to the demand curve for construction labor? How would it affect the wages of construction workers? A Demand would decrease and wages would decrease. Demand would increase and wages would increase. Demand would increase and wages would decrease. Demand would decrease and wages would increase. OA. O D

Explanation / Answer

Option (D) is correct. Demand would decrease and wages would increase. This is because when employers themselves spend more on job safety then their cost of labour will increase due to which they will demand less labour and wages would increase.

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