Which of the Following Is True About Benefits Programs

question 88

Multiple Choice

Which of the following is true about benefits programs?

• A)Public group insurance is one of the categories of benefits programs.
• B)The percentage of employees covered by benefits programs falls with increase in establishment size.
• C)The prevalence of benefits programs in establishments is not very high.
• D)The number of employees covered by benefits programs account for a low percentage amongst the largest employers.
• E)Total compensation costs increase with establishments.

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Definitions:

Consumer Surplus

The gap between the aggregate sum consumers can and are willing to spend on a good or service versus the amount they really spend.

Equilibrium

The state in which market supply and demand balance each other, resulting in stable prices and quantities.

Market Equilibrium

A state in which market supply and demand balance each other, resulting in stable prices and quantities.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, often illustrated in economic surplus models.