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These are true, false and uncertain questions. how to figure these out, thanks. Short Questions 1. In contrast to social insurance, private insurance can provide

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These are true, false and uncertain questions. how to figure these out, thanks.

image text in transcribed
Short Questions 1. In contrast to social insurance, private insurance can provide perfect insurance because cus- tomers pay the full cost of expected insurance claims through the premiums. [2 marks] . Mandatory government-provided health insurance is a Pareto improvement over the private market outcome. True, False, or Uncertain? Support your answer with an explanation (one to two sentences) or a diagram. [2 marks] . If moral hazard effects are large, then private insurance is preferable to social insurance. [2 marks] . All else equal, the higher the risk premium, the lower the certainty equivalent. [2 marks] . Mandatory governmentprovided health insurance constitutes a Potential Pareto Improvement over the private market outcome. True, False, or Uncertain? Support your answer with an explanation (one to two sentences) or a diagram. [2 marks]

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