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Suppose That There Are Two Employers in Tinytown

Question 17

Multiple Choice

Suppose that there are two employers in Tinytown. CareCo offers a generous health insurance package to all employees, while ApathyInc pays slightly higher wages than CareCo, but does not offer health insurance. All else equal, a person who is unhealthy and expects to have high healthcare costs will:


A) prefer to work for CareCo.
B) stop going to the doctor.
C) be equally happy working for either firm.
D) prefer to work for ApathyInc.

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