[ANSWERED] Both high-income and low-income employees are covered by cafeteria plans. Under such plans, all…

Both high-income and low-income employees are covered by
cafeteria plans. Under such plans, all employees may select from a list of
nontaxable fringe benefits or they may elect to receive cash in lieu of these
benefits.
a. Which group of employees is more likely to choose
nontaxable fringe benefits in lieu of cash? Explain.
b. Is this result desirable from a social or economic point
of view? Explain.