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Q. |
Which of the following is a reason why employers are the predominant source of insurance? |
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. | employee compensation in the form of medical expenditures is not taxed. |
D. | both b and c are correct. |
Answer» D. both b and c are correct. |
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