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this is for microeconomics The Economics of Healthcare HOMEWORK # 7 Improvements in the health have increased the production possibility frontier (shifted #1 out) for

this is for microeconomics

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The Economics of Healthcare HOMEWORK # 7 Improvements in the health have increased the production possibility frontier (shifted #1 out) for many years. However, this improvement has not be standard as there have been periods of declining health. Once such episode was in 1918 in the United States when health of citizens actually reduced (The Spanish Flu swept around the globe causing misery and a decline in the health of the population). Explain and SHOW GRAPHICALLY what likely happened to the PPF in the U.S. in 1918? #2 Define the following terms: a. Health insurance b. Fee-for-service c. Single-payer health care system d. Asymmetric information e. Adverse selection f. Moral hazard g. Principal-agent problem #3 An article in the Wall Street Journal argues that "defensive medicine" is helping drive up health costs. That the fear of malpractice lawsuits is causing physicians to order more test and procedures than they otherwise would. Please discuss this in the context of some of the terms defined in Question #2? #4 What causes asymmetric information? #5 When people who face no negative consequence in poor decisions, and make even worse decisions because they are covered by insurance are impacted by what effect? (Example, banks behaved poorly since they knew that any negative event would be helped by government intervention)

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