1. Social Insurance Concepts The government of Utopia is considering introducing an unemployment insurance program, as in as in the social insurance framework discussed in class. Assume all individuals are identical and risk averse. Please evaluate the following statements. Are they true or false? Explain. All points will be given for the explanation. (a) There will not be moral hazard from this program, because individuals know that they will have to pay for longer unemployment durations through higher taxes in other states of the world. (b) If there is no moral hazard, b* will depend on the level of risk aversion. (c) If there is no moral hazard, the utility gain to the citizens of Utopia from introducing this program will depend on the level of risk aversion. (d) Now suppose that there is moral hazard, but the scientists of Utopia have invented a mind control device that allows them to choose unemployment durations for individuals. The government should set their mind control devices so that all citizens choose an unemployment duration (D) of zero. (e) Now assume that the government has set the mind control device optimally. In this case, it should provide citizens with full insurance. (f) Now