Evaluate the following statementsa offering health, Ask an Expert

Economics

Evaluate the following statements.

(a) Offering health insurance by employers as a fringe-benefit reduces the problem of adverse selection.

(b) Too little insurance means that people bear a lot of risk, too much insurance means that people will take inadequate care!

(c) A limited warranty is a signal that the product is not a "lemon." Sears offers satisfaction guaranteed or your money back on its Craftsman tools. Discuss the pros and cons of this unconditional warranty.

(d) High switching costs locks-in consumers from buying substitute goods that may be cheaper.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91675143

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