Final answer:
The statement that workers may pay for mandatory insurance coverage through lower wages is true, as employers may adjust wages to balance additional expenses. Government regulators cannot require unsustainable insurance coverage pricing.
The answer is True.
Step-by-step explanation:
The statement that workers will end up paying for insurance coverage in the form of lower wages if the government requires firms to buy insurance against hair loss for their employees is potentially true. This is a concept known as tax incidence which indicates who actually bears the financial burden of a tax or a cost. In this case, the additional expense of insurance can be passed on to employees through reduced compensation. Employers often adjust their wage expenses in response to mandatory costs such as insurance to maintain their balance sheets.
Government regulators cannot mandate companies to offer high levels of insurance coverage at low prices indefinitely since it could result in financial losses. If insurance premiums are set below a fair level, the shortfall must be compensated by another group, potentially being taxpayers or other insurance buyers.