Question

Because poor people are likely to have adequate healthcare, guaranteeing everyone in society the best healthcare would likely equality. Paying laid-off workers unemployment benefits until they find a new job will likely efficiency because this would their effort searching for a job. Which of the following provides an explanation for your answers regarding efficiency?

a. People will work more hours than is optimal.
b. There will likely be insufficient job openings.
c. Too many workers will want to become medical doctors.
d. People may over consume healthcare and reduce their effort when searching for a job

Answer 1

1. Because poor people are less likely to have adequate healthcare, guaranteeing everyone in society the best healthcare would likely increase equality.

2. Paying laid-off workers unemployment benefits until they find a new job will likely increase equality and decrease efficiency.

3. d. People may over consume healthcare and reduce their effort when searching for a job

Even though guaranteeing the poor adequate healthcare will work to increase equality, it will lead to a situation where healthcare might be overconsumed as too many people will be going to seek medical services because they can now afford it.

If people get unemployment benefits, their immediate needs will be taken care of and they will probably see less of a need to go out and search for a job as a result.