1. In Akerlof's model for the market for lemons, adverse selection is reduced if a. the buyer has better information on used car quality b. the seller has better information on used car quality c. neither a. nor b. d. both a, and b. 2. The World Health Organization plans to send in teams of experts to deal with an outbreak of a disease in a distant country. Sending more teams will prevent more fatalities. It costs $30,000 per team sent and they estimate the following effectiveness: Number of teams 2 3 4 Lives saved 500 600 610 612 613 Suppose saving a life is valued at $10,000. What is the optimal number of teams? a. 1 b. 2 C. d. 4 e. 5. 3. A weakness of applying standard cost-benefit analysis to health care is a. there is difficulty in placing a dollar value on the benefit of health care b. standard cost-benefit analysis does not maximize society's surplus c. neither a. nor b. d. both a. and b. 4. The study "does Abolishing User Fees Lead to Improved Health Status? Evidence from Post- apartheid South Africa" is an example of a randomized experiment b. analyzed using the differences-in-differences method c. neither a. nor b. d. both a, and b. 5. The statistical value of a life saved can be calculated using a. willingness to pay b. willingness to accept c. neither a. nor b. d. both a, and b