Suppose that there are two employers in Tinytown. CareCo offers a generous health insurance package to all employees, while ApathyInc pays slightly higher wages than CareCo, but does not offer health insurance. All else equal, a person who is unhealthy and expects to have high healthcare costs will:
A. stop going to the doctor.
B. prefer to work for ApathyInc.
C. be equally happy working for either firm.
D. prefer to work for CareCo.
Answer: D
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Frictional unemployment
A) includes discouraged workers. B) is voluntary part-time unemployment. C) is unemployment associated normal labor turnover. D) is unemployment associated with declining industries.
A stock is purchased either for the expected gain in the price of the stock, for the dividends that the stock may pay, or both.
Answer the following statement true (T) or false (F)
The inflation rate has been 7 percent for 10 years, and the nominal interest rate has been 6 percent during this same time period. Suddenly, the public anticipates that the inflation rate will be 6 percent this coming year. The real rate of interest for the coming year is
A. 0 percent. B. 13 percent. C. 2 percent. D. 4 percent.
Consumers often purchase products that, afterward, they regret purchasing. This can be explained by
A) consumers trying products to determine if their consumer surplus increases. B) consumers trying products to determine if firm advertising is honest. C) consumers trying to minimize expenditures. D) consumers trying to maximize choice.