2. Some observers of the US health system have said that the most important federal policy relating to health care is the IRS federal tax code.
   2. What part of the IRS code is so important?
   4. Why is it so important?
5. This question has to do with the risk premium.
   2. (2 points) How do we calculate the risk premium?
   4. (6 points) Draw a graph similar to what you drew for question 1(a), but label the following (don't need to make up numbers for this):
      2. Label 2 different income amounts and the corresponding utility.
      4. Label an expected income and the corresponding utility.
      6. Label a certainty equivalent income and the corresponding utility.
      8. Label the risk premium.