For questions 1-8, state whether the situation represents ex ante moral hazard or ex post moral hazard. George's insurance covers all dental work. Because of this, George eats more candy. Alvin's insurance covers all dental work. Because ofthis, Alvin gets flavored laughing gas (a real thing )while getting his tooth filled . Sam's insurance covers the s pecial treatment needed to cure Ebola. Because of this , Sam decides to take a trip to West Africa . Lucy's insurance covers ER visits. Because ofthis, when Lucy gets a cough at 7pm on a Thursday evening, she chooses to go to the ER that night instead of calling her family doctor in the morning. Molly's insurance overs cancer treatment. Because ofthis, Molly gets lax about putting on sun screen when she goes to the beach . Anne's insurance covers transportation by ambulance. Because ofthis, Anne calls 911 when she goes into labor instead of waiting for her husband to come home and drive her to the hospital. John's insurance covers Medevac. Because of this , John decides to attempt a solo ascent of Mount Everest . Luke's insurance overs post -op visits. Because of this, Luke decides to go in for a post-op check- up every month the year after his knee surgery instead of once every six months as recommended. For questions 9-14, consider the following scenario. When Jack is uninsured, his "price" to go snow skiing is $1,200 and he goes 1 time per year. When Jack is fully insured against the medical costs of skiing accidents, his snow skiing price falls to $800 he goes 2 times per year. 10. 11. 12. 13. 14. Explain the intuition behind the why the price of snow skiing decreases with insurance In a graph with "Snow skiing price" on the y-axis and "Number of ski trips per year " on the x-axis, draw Jack's demand for snow skiing. Shade the region that represents the social loss that is generated by Jack being fully insurance against the medical costs of snow skiing accidents. What is the amount of social loss that is generated by Jack being fully insured against snow skiing accidents (i.e., give a specific number). Suppose Jack does not purchase full snow skiing insurance, but instead chooses to purchase partial snow skiing insurance. Under this partial plan, Jack's price of snow skiing is $1,000. Redraw your graph from question 10 and shade the area that represents social loss under partial insurance. What is the amount of social loss that is generated by Jack being partially insured against snow skiing accidents (i.e., give a specific number). Suppose Jack chooses not to purchase insurance that covers the cost of skiing accidents . Instead he chooses to purchase an insurance plan that fully insures against medical costs from skin cancer. Like skiing insurance, this full skin cancer insurance will lower Jack's price of skin cancer from $1,200 to $800 per year . Is there any reason to believe the insurance against skin cancer will result in more or less social loss than the insurance against skiing accidents? Explain