Adverse Selection is a market failure.It's significance in health economics is that, with no government intervention,

pick sentence with one of the following

1) it leads to a greater demand for doctors' services.

2) it leads to the very sick people, and the very healthy people, being uninsured.

3) the doctor (supplier) knows more illnesses and health care than their patient (customer).

4) it leads to the FDA refusing to approve a new medication.

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Which of the following are possible government solutions to the various types ofAdverse Selectionin the market for health insurance?

(i) Make it mandatory for everyone to have health insurance;

(ii) Impose a regulation requiring doctors to have a license to practice medicine;

(iii) Impose regulations requiring private insurance companies to cover pre-existing conditions;

(iv) Provide health insurance for the full population, paying for it through taxation;

(v) Provide health care by owning hospitals, employing doctors, and purchasing health care resources, all financed through taxation;

(vi) Impose a regulation requiring that a Certificate of Need be obtained before building a new hospital.

(i), (ii), (iii), and (iv), only.

(i), (iii), (iv), (v), and (vi), only.

(i), (iii), (iv), and (v), only.

(i), (iii), and (iv), only.

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Which of the following statements is FALSE?

Increasing Returns to Scale is also known as Economies of Scale.

There is no need for the government to regulate a Natural Monopoly.

A market characterized by Increasing Returns to Scale is a Natural Monopoly.