The rational arguments about the law.

Question

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Answer 1

Question

Chapter 7, Problem 1DQ

To determine

The rational arguments about the law.

Expert Solution & Answer

Explanation of Solution

Laws are framed by keeping in mind all the individuals of an economy and main aim of framing such laws is social welfare of the economy at large.

According to the Affordable Care Act, insurance companies are permitted to charge different premiums from different consumers, categorized according to health issues. If a person is obese or smokes, then chances for illness are more, so premium of insurance policy tends to be higher.

As chances of illness increases in such persons, then insurance company either wants to charge more premium or deny coverage if the individuals do not pay higher premium. The rationale behind the act is that people with ill-health have more chances of being hospitalized, so more burden will be on insurance company.

However, law do not allow such differences in premiums as it cannot distinguish people on the basis of their health. Moreover, main aim of law is social benefit, so people are considered same irrespective of their health-issues.

Economics Concept Introduction

Concept introduction:

Demand: The willingness of a consumer to buy a commodity depending on his purchasing power is known as demand.

Supply: A particular quantity of a commodity or a service available in the market at a particular price is known as supply.

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Answer 2

Question

Chapter 7, Problem 1DQ

To determine

The rational arguments about the law.

Expert Solution & Answer

Explanation of Solution

Laws are framed by keeping in mind all the individuals of an economy and main aim of framing such laws is social welfare of the economy at large.

According to the Affordable Care Act, insurance companies are permitted to charge different premiums from different consumers, categorized according to health issues. If a person is obese or smokes, then chances for illness are more, so premium of insurance policy tends to be higher.

As chances of illness increases in such persons, then insurance company either wants to charge more premium or deny coverage if the individuals do not pay higher premium. The rationale behind the act is that people with ill-health have more chances of being hospitalized, so more burden will be on insurance company.

However, law do not allow such differences in premiums as it cannot distinguish people on the basis of their health. Moreover, main aim of law is social benefit, so people are considered same irrespective of their health-issues.

Economics Concept Introduction

Concept introduction:

Demand: The willingness of a consumer to buy a commodity depending on his purchasing power is known as demand.

Supply: A particular quantity of a commodity or a service available in the market at a particular price is known as supply.

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Answer 3

Question

Chapter 7, Problem 1DQ

To determine

The rational arguments about the law.

Expert Solution & Answer

Explanation of Solution

Laws are framed by keeping in mind all the individuals of an economy and main aim of framing such laws is social welfare of the economy at large.

According to the Affordable Care Act, insurance companies are permitted to charge different premiums from different consumers, categorized according to health issues. If a person is obese or smokes, then chances for illness are more, so premium of insurance policy tends to be higher.

As chances of illness increases in such persons, then insurance company either wants to charge more premium or deny coverage if the individuals do not pay higher premium. The rationale behind the act is that people with ill-health have more chances of being hospitalized, so more burden will be on insurance company.

However, law do not allow such differences in premiums as it cannot distinguish people on the basis of their health. Moreover, main aim of law is social benefit, so people are considered same irrespective of their health-issues.

Economics Concept Introduction

Concept introduction:

Demand: The willingness of a consumer to buy a commodity depending on his purchasing power is known as demand.

Supply: A particular quantity of a commodity or a service available in the market at a particular price is known as supply.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 7, Problem 1DQ

To determine

The rational arguments about the law.

Expert Solution & Answer

Explanation of Solution

Laws are framed by keeping in mind all the individuals of an economy and main aim of framing such laws is social welfare of the economy at large.

According to the Affordable Care Act, insurance companies are permitted to charge different premiums from different consumers, categorized according to health issues. If a person is obese or smokes, then chances for illness are more, so premium of insurance policy tends to be higher.

As chances of illness increases in such persons, then insurance company either wants to charge more premium or deny coverage if the individuals do not pay higher premium. The rationale behind the act is that people with ill-health have more chances of being hospitalized, so more burden will be on insurance company.

However, law do not allow such differences in premiums as it cannot distinguish people on the basis of their health. Moreover, main aim of law is social benefit, so people are considered same irrespective of their health-issues.

Economics Concept Introduction

Concept introduction:

Demand: The willingness of a consumer to buy a commodity depending on his purchasing power is known as demand.

Supply: A particular quantity of a commodity or a service available in the market at a particular price is known as supply.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 7, Problem 1DQ

To determine

The rational arguments about the law.

Expert Solution & Answer

Explanation of Solution

Laws are framed by keeping in mind all the individuals of an economy and main aim of framing such laws is social welfare of the economy at large.

According to the Affordable Care Act, insurance companies are permitted to charge different premiums from different consumers, categorized according to health issues. If a person is obese or smokes, then chances for illness are more, so premium of insurance policy tends to be higher.

As chances of illness increases in such persons, then insurance company either wants to charge more premium or deny coverage if the individuals do not pay higher premium. The rationale behind the act is that people with ill-health have more chances of being hospitalized, so more burden will be on insurance company.

However, law do not allow such differences in premiums as it cannot distinguish people on the basis of their health. Moreover, main aim of law is social benefit, so people are considered same irrespective of their health-issues.

Economics Concept Introduction

Concept introduction:

Demand: The willingness of a consumer to buy a commodity depending on his purchasing power is known as demand.

Supply: A particular quantity of a commodity or a service available in the market at a particular price is known as supply.

Answer 6

Chapter 7, Problem 1DQ

To determine

The rational arguments about the law.

Expert Solution & Answer

Explanation of Solution

Laws are framed by keeping in mind all the individuals of an economy and main aim of framing such laws is social welfare of the economy at large.

According to the Affordable Care Act, insurance companies are permitted to charge different premiums from different consumers, categorized according to health issues. If a person is obese or smokes, then chances for illness are more, so premium of insurance policy tends to be higher.

As chances of illness increases in such persons, then insurance company either wants to charge more premium or deny coverage if the individuals do not pay higher premium. The rationale behind the act is that people with ill-health have more chances of being hospitalized, so more burden will be on insurance company.

However, law do not allow such differences in premiums as it cannot distinguish people on the basis of their health. Moreover, main aim of law is social benefit, so people are considered same irrespective of their health-issues.

Economics Concept Introduction

Concept introduction:

Demand: The willingness of a consumer to buy a commodity depending on his purchasing power is known as demand.

Supply: A particular quantity of a commodity or a service available in the market at a particular price is known as supply.

Answer 7

Chapter 7, Problem 1DQ

To determine

The rational arguments about the law.

Answer 8

Expert Solution & Answer

Explanation of Solution

Laws are framed by keeping in mind all the individuals of an economy and main aim of framing such laws is social welfare of the economy at large.

According to the Affordable Care Act, insurance companies are permitted to charge different premiums from different consumers, categorized according to health issues. If a person is obese or smokes, then chances for illness are more, so premium of insurance policy tends to be higher.

As chances of illness increases in such persons, then insurance company either wants to charge more premium or deny coverage if the individuals do not pay higher premium. The rationale behind the act is that people with ill-health have more chances of being hospitalized, so more burden will be on insurance company.

However, law do not allow such differences in premiums as it cannot distinguish people on the basis of their health. Moreover, main aim of law is social benefit, so people are considered same irrespective of their health-issues.