When Health Insurance Is Purchased Primarily Through One's Employer

question 113

Multiple Choice

When health insurance is purchased primarily through one's employer,

• A) direct purchase of health insurance becomes cheaper.
• B) the benefits of the healthcare insurance are fully taxable.
• C) it is more costly for employees to switch jobs and move to areas where jobs are available.
• D) the overall number of people without health insurance decreases.

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Definitions:

Cournot Model

The Cournot Model is an economic theory that describes an industry structure where companies compete on the quantity of output they will produce, affecting the market price.

Rivals' Reactions

In business strategy and economics, the anticipated responses or actions of competing entities in reaction to a company's decisions or changes in the marketplace.

Game Theory

Analyzes the choices made by rival firms, people, and even governments when they are trying to maximize their own well-being while anticipating and reacting to the actions of others in their environment.

Oligopolistic Industries

Industries dominated by a small number of firms, leading to competitive conditions that fall between a monopoly and perfect competition.