A Problem Withproviding Flexibility in Benefit Choice Is That_____

question 8

Multiple Choice

A problem withproviding flexibility in benefit choice is that_____.

• A) it does not cover higher-risk employees
• B) it increases the risk of adverse selection by employees
• C) it is typically discriminatory in nature
• D) it increases attrition rates

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Definitions:

Compensate

To make amends or give an equivalent to someone for loss, damage, or suffering experienced.

Free-Rider Problem

A situation where individuals consume a good or service without paying for it, especially in the context of public goods.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be consumed by many people without depleting and without preventing others from consuming it.

Nonrival

A good or service is nonrival if its consumption by one individual does not reduce its availability to others.