MCQOPTIONS
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| 1. |
Which of the following is a reason why employers are the predominant source of insurance? |
| A. | insuring at the firm level reduces the extent to which insurance has moral hazard effects. |
| B. | insuring at the firm level allows insurers to create large insurance pools with a predictable distribution of medical risk. |
| C. | employee compensation in the form of medical expenditures is not taxed. |
| D. | both b and c are correct. |
| Answer» E. | |