Question

In which situation would government regulation most likely be necessary?

A factory requires employees to work in unsafe conditions.
A restaurant requires employees to work overtime on weekends.
A computer company requires employees to work long hours.
A power plant requires employees to take safety training classes.

Answer 1

A factory requires employees to work in unsafe conditions.

Reason: Unsafe workplaces create significant risks of injury or death and external costs that employers may not fully account for, so government health-and-safety regulation and enforcement (e.g., workplace safety standards) are typically needed.