Federal tax policy:

A. treats employer health insurance premiums as taxable income.
B. subsidizes health insurance and thereby increases the demand for health care.
C. subsidizes health insurance and thereby decreases the demand for health care.
D. corrects the overallocation of resources to the health care industry that would otherwise
exist.

Answer: B

Economics

You might also like to view...

Refer to the scenario above. What is the size of the labor force in the economy?

A) 6 million B) 3 million C) 4 million D) 5 million

Economics

A safety measure whose benefits outweigh its costs is called a ________

Fill in the blank(s) with correct word

Economics