Please provide your answer to the following questions in narrative form explaining your reasoning in details:

1. The Republic of Armenia is currently considering to introduce mandatory health insurance for all its citizens who are officially employed. Explain please, how can mandatory health insurance help reduce the problem of adverse selection in the health insurance market?
2. A company facing the problem of moral hazard decided to lay off some workers during a recession instead of lowering wages. What is the possible reason for such a decision? In this regard, what would you expect, which is the type of workers that would be more probable to lose work in recession time (and who would be more probable to get wage cut)?