Author Question: When firms participate in group health insurance for all employees, it A) raises rates for ... (Read 98 times)

nautica902 · **on:** Jul 1, 2018

When firms participate in group health insurance for all employees, it

A) raises rates for everyone, because it brings unhealthy people into the pool.
B) raises rates for unhealthy people.
C) may lower rates for all people to the extent that it keeps healthy people in the pool.
D) prevents unhealthy people from selecting out, to the detriment of healthy people.
E) increases the amount of information available to insurers about the population.

Question 2

Short run expenditure patterns may change very little when income declines.

Indicate whether the statement is true or false