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 124 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?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

The Land Ordinance of 1785 called for surveying and dividing the Western Territories into square mil The Land Ordinance of 1785 called for surveying and dividing the Western Territories into square mil
Regular staff meetings increase the efficiency of the medical office staff. Regular staff meetings increase the efficiency of the medical office staff.
One-handed kneading. Tissues are lifted with the whole hand in firm contact. One-handed kneading. Tissues are lifted with the whole hand in firm contact.
Phosphorus in Phospholipids Phosphorus makes up part of the phospholipids found in cell membranes Phosphorus in Phospholipids Phosphorus makes up part of the phospholipids found in cell membranes
Breakdown of the Population by Schooling and Wages Breakdown of the Population by Schooling and Wages
Management Information Systems: Managing the Digital Firm, 15th Edition Management Information Systems: Managing the Digital Firm, 15th Edition
Video: Bone tissue types - compact and spongy

For a complete list of videos, visit our video library