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In the Oct 29,2005 NY Times Article,Wal-Mart's Health Care Struggle

Question 171

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In the Oct 29,2005 NY Times Article,Wal-mart's Health Care Struggle is Corporate America's too,an internal Wal-Mart Memo,suggested redefining jobs to require physical activity,and to offer health care insurance plans that allowed workers who have low medical costs to spend the unused benefits on other items,like housing or education.Give an adverse selection explanation and a moral hazard explanation of how these actions can help reduce Wal-Mart's health care costs.

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The adverse selection problem (pre contr...

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