Suppose that the causal effect of income on health

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Ture/false give explanation

1. Suppose that the causal effect of income on health is positive for every person. Then a mean-preserving spread in income will lead to a reduction in average health.

2. In Grossman's model, health falls faster with age if the MEC schedule is elastic.

3. Supply of health care is given by QS = P and demand by QD = 10 - P. If a health insurance plan covers 100% of health care expenditures, deadweight loss from moral hazard will equal 25 units.

Reference no: EM132417088

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