What are two reasons why employees would prefer for their employer to pay for their health insurance rather than receiving increased wages and paying for their own health insurance?
What will be an ideal response?
1. The wage an employer pays employees is taxable income to the employees but the money an employer spends to buy health insurance for employees is not taxable.
2. Insurance companies are typically willing to charge lower premiums for group insurance, particularly to large employers, because risk pooling is improved and adverse selection and moral hazard problems are lower when compared with individual policies.
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Which formula is correct?
A) S = Yd - C B) Yd + S = C C) Yd + C = S D) Yd × S = C
In reference to worldwide competition laws, each of the following are fundamentally prohibited or highly suspicious among regulators across almost all countries except which one?
A) creation of cartels B) charging unfairly high prices C) dominant firms D) monopolies
Which of the following statements is correct?
a. The United States has a more equal distribution of income than other developed countries such as Japan and Germany. b. The statement "a rising tide lifts all boats" illustrates how economic growth reduces the number of people with income levels below the poverty line. c. The economic life cycle explains why people base spending decisions on transitory income. d. The United States has more income inequality than developing countries, including Mexico and Brazil.
In a properly operating, dynamic economy
What will be an ideal response?