1. What are the 5 policy options a national health care system might consider when determining how to structure its health insurance market? Explain the problem of adverse selection in the context of the health insurance market and explain how each of the five options addresses the problem of adverse selection.

2. Categorize each of the five options discussed in question 1 in terms of its effect on adverse selection: identify the option that likely will produce the most adverse selection, the option that likely will produce the least adverse selection, and the options that are in the middle. Explain your answers.

3. What are the 4 policy options a national health care system might consider to control moral hazard. Explain how each of these options addresses the problem of moral hazard, and give one disadvantage to adopting each of these policy options.

4. Provide one reason it might not be appropriate to evaluate a nation's health care system by comparing its relationship between health spending and health outcomes to the relationship between health spending and health outcomes in another nation's health care system.