Question

As part of the Affordable Care Act (ACA), the government pays a subsidy to low-income consumers when they buy health insurance. If you assume there are no externalities associated with health insurance, which of the following best describes the effects of the subsidy?

Low-income buyers would lose, health insurance providers would lose, and taxpayers would lose

Low-income buyers would benefit, health insurance providers would benefit, and taxpayers would benefit

Low-income buyers would benefit, health insurance providers would benefit, and taxpayers would lose

Low-income buyers would benefit, health insurance providers would lose, and taxpayers would lose

Answer 1