Robert works for American Motors. American Motors pays a $1,200 premium on Robert's health insurance in 2011. Robert has an operation on his big toe in 2011 that cost $7,200. The insurance company paid for $6,800 of it. Which one of the following is true?
Answer

1. Robert has to claim the $1,200 premium paid by his employer as income in 2011.
2. Robert must claim the $6,800 paid by the insurance company for the operation as income in 2011.
3. Robert must claim the $1,200 premium and the $6,800 insurance payment as income in 2011.
4. None of these events are taxable on his 2011 return.

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.