Indicate whether the statement is true or false, and justify your answer.Insurance represents a transfer of wealth from healthy states to sick states.

Which option is the most effective for companies and employees: a standard fee-for-services health care insurance option or a high-deductible health insurance plan.

Suppose that there are two countries, Beta and Gamma. Suppose further that everyone in country Beta is on Insurance B and everyone in country Gamma is on Insurance G. Suppose further that both governments use government-set price controls. In 2005, country Beta decided to change the reimbursement rate for pharmaceuticals,  but country Gamma did not make this change. You, a researcher, want to study the effect of offering coverage for this drug had an impact on health expenditures. You have average health expenditures for State Beta and Gamma prior to 2005 and post-2005.  Using your finding from the question above, you can infer that country Beta likely _____ reimbursement rates for pharmaceutical drugs. State Time Periods Pre-2005 Post-2005 State Beta $1000 $1400 State Gamma $1500 $1700 a. lower b. did not change c. raised

Indicate whether the statement is true or false, and justify your answer.Even though health insurance is universal, citizens can choose whether or not they are insured.

Name two solutions to adverse selection in insurance and explain how they work.