1. Suppose your employer's marginal corporate tax rate is 25%. If the total cost of deductible employee benefits is $1,000,000. What is the effective or after-tax cost to your employer?
750,000
$250,000
$1,250,000
2. The risk that insurance companies have that those individuals who will likely have the most claims are the most likely to seek out buying insurance is called:
subrogation
adverse selection
underwriting
perils