Which of the Following Statements Regarding the Affordable Care Act

question 8

Multiple Choice

Which of the following statements regarding the Affordable Care Act (ACA) is true?

• A) The ACA could have negative employment effects as some firms will not expand above having 50 workers in order to avoid the mandate.
• B) The ACA should not be viewed as an employer-provided benefit as the ACA is a federal mandate.
• C) The ACA will likely lead to an increase in wages.
• D) Prior to the passage of the ACA, over 100 million (more than one-third) of Americans did not have health insurance.
• E) All of the statements are true.

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Definitions:

Maturity Matching Principle

This principle suggests that the duration of assets and liabilities in a company's portfolio should be aligned, meaning short-term assets should be financed with short-term liabilities, and long-term assets with long-term liabilities.

Long-term Funding

Financing obtained for a period longer than a year, used for acquiring assets, structural projects, or significant investments.

Short-term Funding

Financing obtained for a period of one year or less, often used to manage the day-to-day operational costs of a business.

JIT Inventory

Just-In-Time Inventory; a management strategy that aligns raw-material orders from suppliers directly with production schedules.