A. True/False Explain. Indicate whether each of the following statements is true or false and then explain why you think this. Include in your explanation any pertinent institutional details and economic reasoning (including appropriate graphs and equations). Please provide concise, clear answers with minimal irrelevant detail. Explanation is required. (5 points each). 1. The Grossman model says that as people get older, the rate of depreciation of health capital increases. When the rate of depreciation increases (holding everything else fixed), the utility-maximizing choice of Z* will increase. 2. According to the model of rational addiction, an increase in taxes on addictive goods is likely to reduce the number of non-addicted consumers who try small quantities of the addictive good for the first time. 3. The RAND Health Insurance Experiment showed that health insurance causes a modest amount of deadweight loss from moral hazard because demand for medical care is relatively inelastic. 4. In real life, investments in health can generate long-lasting benefits, but the Grossman model neglects this aspect of health