1. what is the insurance buying rule? how does major medical insurance comply with that rule? 2. briefly describe the three major legally-required employee benefits. 3. what are the major components of the social security program? how is social security funded? 4. why is group insurance usually less expensive than a comparable individual insurance policy? why is vesting something that all employees whether close to retirement or not should understand?

10. problems and applications q10 consider public policy aimed at smoking. studies indicate that the price elasticity of demand for cigarettes is about 0.2. if a pack of cigarettes currently costs $5 and the government wants to reduce smoking by 10%, it should increase the price by % . if the government permanently increases the price of cigarettes, the effect on smoking 1 year from now will be than the effect 5 years from now. studies also find that teenagers have a higher price elasticity of demand than do adults. which of the following statements are consistent with this result? check all that apply. it is legal for adults to consume alcohol, so many choose to spend their money on that good rather than cigarettes. teenagers do not have as much income as adults, so they are more price sensitive. adults are more likely to be addicted to cigaret