Which of the following is not part of the taxes provision of the ...

[storky111]

Which of the following is not part of the taxes provision of the Patient Protection and Affordable Care Act (ACA)?
 
  A) Workers earning more than 200,000 pay higher Medicare payroll taxes.
  B) Investors earning more than 200,000 pay a new tax on their investment income.
  C) Pharmaceutical firms and health insurance firms pay new taxes.
  D) Beginning in 2018, all taxes on employer-provided health insurance plans will be reduced or eliminated.

Question 2

Describe the payoffs for an R&D game of chicken and contrast them with the payoffs in a prisoners' dilemma.
 
  What will be an ideal response?

[yasmina]

Answer to Question 1

D

Answer to Question 2

In the R&D game of chicken, a firm can use the R&D if either it conducts the R&D or if its competitor conducts the R&D. So if one firm conducts the R&D, it bears the cost and reaps the reward but the other firm reaps only the reward because it pays none of the costs. In a game of chicken, neither firm wants to do the R&Dboth firms would prefer that the other conduct the R&D. In the prisoners' dilemma R&D game, a firm can use the R&D only if it conducts R&D. If one firm conducts R&D, the firm incurs the costs of the R&D but then it alone reaps the rewards of the R&D. In this situation, both firms have the incentive to cheat on any agreement to restrict R&D because each firm knows that if it, and it alone cheats, its profit will increase.