Question

In: Economics

Requiring an employer to provide health insurance or a person for workers is like a tax...

Requiring an employer to provide health insurance or a person for workers is like a tax on labor, which will cause a decrease in the demand for labor.

A. True or B. False

Solutions

Expert Solution

Solution :-

This statement is False.

Health insurance and Pension is a benefit to employer , It is not like a tax on labor , Means it is in the favour of employees Many State governments Mandate employers to provide health insurance to employees.

So By Providing benefits of Health Insurance and Pension Labour Demand Will even increasae


Related Solutions

One criticism of employer provided health insurance in the U.S. is that it is tax preferred....
One criticism of employer provided health insurance in the U.S. is that it is tax preferred. Why is this a point of criticism? Who benefits most from this policy? Who doesn’t?
A sample of 25 workers with employer provided health insurance paid an average premium of $6600...
A sample of 25 workers with employer provided health insurance paid an average premium of $6600 with a standard deviation of $800. Construct a 95% confidence interval for the mean premium amount paid by all workers who have employer provided health insurance.
You are in the 25% income tax bracket. Your employer offers health insurance as a benefit...
You are in the 25% income tax bracket. Your employer offers health insurance as a benefit valued at $4000 per year. Or your employer is offering you $4000 cash if you do not accept the health benefit. If making a rational economic decision, which option do you take?
True or False. A mandate requiring all jobs to provide health insurance has the same impacts...
True or False. A mandate requiring all jobs to provide health insurance has the same impacts as a plan imposing an income tax to fund a government health insurance plan covering all workers (assume the insurance plans are identical in both cases), because with both plans workers end up paying for healthcare in the form of lower take home wages.
The requirements that (most) firms provide health insurance to workers can be thought of as increasing...
The requirements that (most) firms provide health insurance to workers can be thought of as increasing the costs of labor. What kinds of industries will be more likely to respond with large decreases in employment in response to these rules? How will the response be different in the short versus long run? Consider the Hicks-Marshall laws in your answer.
Tax-exempt employer-purchased health insurance: decreases the patient's incentive to be concerned about the cost and use...
Tax-exempt employer-purchased health insurance: decreases the patient's incentive to be concerned about the cost and use of services. is being eliminated by the Affordable Care Act. provides physicians an incentive to be more concerned about their patients' use of services. is also available to those who are self-employed.
Suppose a large employer contracts with an insurer to providehealth insurance coverage or workers’ compensation...
Suppose a large employer contracts with an insurer to provide health insurance coverage or workers’ compensation coverage for its employees. The employer (the insured) really self-insures, and the insurer is a third party administrator. Any benefits paid by the insurer to the employees is reimbursed by the employer. The employer may buy excess coverage, such as coverage for annual health benefits exceeding $10 million. The insurer and the employer can negotiate the premium for the policy at very low transaction...
Would federal law be violated if a union would like its employer to require workers to...
Would federal law be violated if a union would like its employer to require workers to join the union after a specified amount of time on the job although the employer does not require its new hires to join the union as a requirement for getting hired? If an employer has 7,000 workers in 7 locations, do its employees have the right to organize?
Wage and Tax Statement Data on Employer Federal Insurance Contributions Act tax used to finance federal...
Wage and Tax Statement Data on Employer Federal Insurance Contributions Act tax used to finance federal programs for old-age and disability benefits (social security) and health insurance for the aged (Medicare).FICA Tax Ehrlich Co. began business on January 2, 20Y8. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the required amounts. An employee who is hired in the middle of the month receives...
One of the Affordable Care Act's features was a mandate requiring everyone to have health insurance....
One of the Affordable Care Act's features was a mandate requiring everyone to have health insurance. The mandate feature was included because there is too little competition in insurance markets there are externalities in the health insurance market people purchasing health insurance have imperfect information about their policies imperfect information in insurance markets requires that the pool of insured people include a wide range of health risks
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT