d) Policymaker A says "Decisions about health insurance involve a tradeoff between the gains from risk reduction and the losses from over-utilization of care. Thus, an optimal co-insurance rate for inpatient care would be about 5 percent." In a few short paragraphs, explain: (a) what the policymaker means by "gains from risk reduction" and "losses from over-utilization of care"; and (2) why the policymaker estimates that the optimal co-insurance rate would be low (only 5 percent) specifically for inpatient care. (15 points)