Which of the Following Is True of the Workers' Compensation

question 44

Multiple Choice

Which of the following is true of the workers' compensation insurance?

• A)Self-employed people pay lower premium to their employees for workers' compensation insurance as compared to corporate employees.
• B)Workers' compensation insurance includes only rehabilitation expenses.
• C)Employers are required to bear half of the entire cost of workers' compensation insurance.
• D)Workers' compensation insurance compensates workers who are injured on the job or become ill through work-related causes.
• E)Compensation received from the insurance coverage is based on historical usage; employees who file the least claims pay the lowest premiums on the insurance coverage.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service supplied is equal to the quantity demanded.

Surplus

An excess amount of something, especially in the context of production and supply exceeding demand in economics, leading to a situation where the quantity supplied is greater than the quantity demanded.

Nonprice Rationing

Methods of allocating goods and services without adjusting prices, often used in times of shortages, such as queuing or allocating based on need.

Queuing

The process or system by which people or items are arranged in a line awaiting their turn to be attended to or processed.