Suppose Health-Care Reform Y Makes It Unlawful for Insurance Companies

question 70

Multiple Choice

Suppose health-care reform Y makes it unlawful for insurance companies to deny insurance to persons with a preexisting disease and sets a fine for those people who do not buy insurance.It follows that if the fine is

• A) larger than the benefits derived from not buying insurance right away,then people will not buy the insurance and pay the fine.
• B) smaller than the benefits derived from not buying the insurance right away,then people will not buy the insurance and pay the fine.
• C) larger than the benefits derived from not buying insurance right away,then people will buy the insurance right away and not pay the fine.
• D) b and c
• E) none of the above

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Definitions:

Competence Stage

A phase in the learning process where an individual becomes capable of performing a skill with proficiency, often after much practice and learning.

Capability

The ability or qualities necessary to achieve or produce a specified result or outcome.

Management

The process of dealing with or controlling things or people, often within organizations.

Growth

The process of increasing in size, maturity, or strength.