What is a reason why the cost of health care is rising so quickly?

Group of answer choices

Our society is aging, and elderly people have higher health care demands

When insurance pays for health care expenditures, individuals don't care about the price of the care

People want the newest and most expensive health care available

All of the above

Why could extreme cases of adverse selection be a problem for health care?

Group of answer choices

It would lower to price of health care too much, discouraging new hospital construction

It would cause too many healthy people to buy insurance they don't need

It would increase the amount of benefits insurance companies could provide individuals, thus causing a huge increase in the demand for insurance

It would lead to unsustainable costs for insurance companies, and then people could lose health insurance

Which of the following situations is an example of moral hazard in health care?

Group of answer choices

Michael decides to enroll in his employer's health insurance plan

Joey gets in a car accident, and his insurance covers his medical expenses

Sheila waits to have a baby until she gets insurance that will cover maternity expenses

Richard gets a flu shot to reduce his chance of getting sick