7. What assumption is most important to reach the conclusion that government regulation of risk on the job harms some workers? a. The assumption of perfect information b. The assumption of diminishing marginal returns to safety expen- diture c. The assumption that some firms have market power in the output market d. The assumption that it's costly for firms to reduce risk 8. Holding all else constant, the offer curve in a labor market where there is a trade-off between wages and risk of injury does NOT tell us: a. The possible wage-risk combinations that firms will offer in a labor market. b. The optimal matches between risk-averse workers and firms in a labor market. c. The equilibrium level of employment when risk is present d. The compensating wage differentials for various levels of risk.

Q: True

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Q: Here is my question!

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