Suppose That There Are Two Employers in Tinytown

question 90

Multiple Choice

Suppose that there are two employers in Tinytown.CareCo offers a generous health insurance package to all employees while ApathyInc pays slightly higher wages,just sufficient to pay for health coverage for a person in average health.
Suppose that the cost of insurance increases if greater-than-average claims are made,whether the insurance is purchased by an individual or by a company for its employees.Therefore,over time,

• A)CareCo's insurance costs will fall.
• B)ApathyInc will have to increase its wages to cover increased insurance premiums.
• C)less healthy employees at ApathyInc will move to CareCo.
• D)less healthy employees at CareCo will move to ApathyInc.

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Definitions:

Majority Rule

A decision-making principle where the option that receives the most votes from a group is selected.

Decision Consensus

A group decision-making outcome where all members agree on the chosen course of action, ensuring alignment and commitment among participants.

Groupthink

A psychological phenomenon occurring within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Restricted Network

A network that limits access to authorized users and often implements controls to manage information flow and data security.