Question

The readings this week deal with risk and hazard. Consider what this means for the firm...

  • The readings this week deal with risk and hazard. Consider what this means for the firm and society.
  • Find an example that you see in life and discuss this from an economic view based on key points from the chapter. Be sure to give specific examples and cite your sources.

Homework Answers

Answer #1

Workplace stress can actually cause harm to mental health and thus is classified as hazard which thus has higher portability of employees turnover and thus is classified as risk. This causes workplaces productivity to decline for the firm and cause higher unemployment levels for society.

In an economic sense, reduced employment creates lower disposable incomes and thus consumption declines leading to lower aggregate demand and thus reduced real GDP and economic growth.

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