One Reason Employers Are the Predominant Source of Health Insurance

question 32

Multiple Choice

One reason employers are the predominant source of health insurance is because:

• A) insuring at the firm level reduces the extent to which insurance has moral hazard effects.
• B) insuring at the firm level allows insurers to create large insurance pools with a predictable distribution of medical risk.
• C) government regulation requires that employee compensation include a non-cash component and health insurance premiums qualify.
• D) it is efficient from society's perspective to link employment and health insurance coverage.

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Definitions:

Productivity

The effectiveness of productive effort, especially in industry, as measured in terms of the rate of output per unit of input.

Conscientiousness

A personality trait characterized by thoroughness, a desire to do a task well, and attention to detail.

Job Setting

The environment or location where an individual's professional work activities take place, including the physical and cultural atmosphere.

Five-Factor Model

A comprehensive model that outlines five broad dimensions of personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism, used in psychological assessment.