Thrush,Inc

question 130

Essay

Thrush,Inc.,provides group-term life insurance of $50,000 for all of its employees.The total cost of such coverage is $15,000.Wren,Inc.,does not provide such coverage.Instead,it increases the employees' salaries by $15,000 so the employees can purchase such coverage if they choose to do so.The corporations are in the 34% tax bracket,and the shareholders are in the 28% tax bracket.Compare the effects of the two different fringe benefit policies on the corporations and on the employees.

Grasp the concepts of various economic fallacies, including post hoc ergo propter hoc, fallacy of composition, and confusion between correlation and causation.

Recognize the importance and implications of rational individual choice in economics.

Distinguish between macroeconomics and microeconomics.

Comprehend the concept of opportunity cost in different scenarios.