Problem
1. What is the rationale for exempting a firm's contribution to its workers' health insurance from taxation as worker income? What is the impact of this exemption on allocative efficiency in the health care industry?
2. Comment on or explain:
a. Providing health insurance to achieve equity goals creates a trade-off with the efficient allocation of resources to the health care industry.
b. If the government were to require employer-sponsored health insurance for all workers, the likely result would be an increase in the unemployment of low-wage workers.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.