Under the Consolidated Omnibus Budget Reconciliator Act of 1986,the Federal

question 5

Multiple Choice

Under the Consolidated Omnibus Budget Reconciliator Act of 1986,the federal government requires:

• A)That people who leave positions be allowed to maintain their medical coverage for a maximum of 18 months regardless of their medical condition at the time
• B)That people who leave positions be allowed to maintain their medical coverage for a maximum of 12 months regardless of their medical condition at the time
• C)That people who leave positions be allowed to maintain their medical coverage for a maximum of 12 if they were in good health when leaving
• D)That people who leave positions be allowed to maintain their medical coverage for a maximum of 18 months if they were in good health when leaving
• E)None of the above

---

Definitions:

External Costs

Costs incurred as a result of an economic activity that are not borne by the entities undertaking the activity but rather by other parties or society at large.

Marginal Cost

The rise in expense associated with the production of an extra unit of a product or service.

Benefits To Consumers

Refers to the advantages or improvements in well-being and satisfaction that consumers experience from purchasing and using goods and services.

Externalities

Monetary consequences that reach beyond the primary parties, impacting others positively or negatively.