This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: When unions or legislation makes it necessary for a firm to pay higher wages, A) efficiency ... (Read 66 times)

mcmcdaniel

  • Hero Member
  • *****
  • Posts: 550
on: Jun 29, 2018
When unions or legislation makes it necessary for a firm to pay higher wages,
 
  A) efficiency declines.
  B) income is transferred from wealthy people to poor people.
  C) the marginal value of retained employees falls.
  D) the marginal value of retained employees rises.
  E) total purchasing power increases.

Question 2

How can a health insurance mandate help in reducing the problem of adverse selection in the health insurance market?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

lorealeza

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

The problem of adverse selection occurs in the health insurance market when low-risk individuals stay out of the market due to high premiums. A large number of high-risk individuals in the market further increases the premium causing only high-risk individuals to remain in the market. A health insurance mandate, which requires everybody to purchase a basic insurance plan, implies that low-risk individuals cannot opt out of the market and thus prevents the chain of events triggered by adverse selection.


mcmcdaniel

  • Hero Member
  • *****
  • Posts: 550
Reply #2 on: Jun 29, 2018
Correct answers!


lorealeza

  • Sr. Member
  • ****
  • Posts: 345
Reply #3 on: Jun 29, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Muskox populations remain in the Arctic all year, though they migrate to higher elevations in the wi Muskox populations remain in the Arctic all year, though they migrate to higher elevations in the wi
Potency and efficacy: (a) Drug A has a higher potency than drug B. (b) Drug A has a higher efficacy ... Potency and efficacy: (a) Drug A has a higher potency than drug B. (b) Drug A has a higher efficacy ...
Oil pressure relief valves are spring loaded. The stronger the spring tension, the higher the oil ... Oil pressure relief valves are spring loaded. The stronger the spring tension, the higher the oil ...
How to use implicit differentiation with higher order derivatives How to use implicit differentiation with higher order derivatives
Wages and Machines in the Textile Industry, 1910 Wages and Machines in the Textile Industry, 1910
Production efficiency vs. trophic efficiency Production efficiency vs. trophic efficiency
Video: Cardiac Cycle (Part 1 of 4)

For a complete list of videos, visit our video library