Suppose that there are two employers in Tinytown. CareCo offers a generous health insurance package to all employees, while ApathyInc pays slightly higher wages than CareCo, but does not offer health insurance. All else equal, a person who is unhealthy and expects to have high healthcare costs will:
A)prefer to work for CareCo.
B)stop going to the doctor.
C)be equally happy working for either firm.
D)prefer to work for ApathyInc.

Question

Quizplus · Accepted Answer

Those who are relatively unhealthy will benefit more from the health insurance policy at CareCo.

Suppose That There Are Two Employers in Tinytown