A mandate that requires employers to provide health insurance will cause the price of physical capital to:

Question

Quizplus · Accepted Answer

When employers are required to provide health insurance, it increases the cost of labor. To offset this cost, employers may decrease their investment in physical capital, which will cause the price of physical capital to rise. This is because the demand for physical capital will increase as employers switch their focus to investing in it, causing prices to rise due to increased demand.

A Mandate That Requires Employers to Provide Health Insurance Will