Health Insurance

1. Assuming moral hazard occurs on the consumer side of the market what provide a possible policy solution to reduce the overconsumption of health care. Explain how this policy solution functions.

 

2. Could cost sharing result in higher health care expenditures or worse health outcomes? Explain your answer.

 

3. True, false, uncertain: health insurance causes moral hazard and consumers should be subjected to cost sharing provisions. Explain your answer