Week 12 Homework
A.
$
MB
MC
T
j
k
B.
$
MB
jg
k
MC
T
C.
$
MB
MC
T
j
hk
D.
$
D
MB
MC
T
j
k
FIGURE 1: Demand-Side Moral Hazard
1) In Figure 1, panels A and D show two levels of coinsurance while B and C show two different deductibles. As a result, you expect there to be deadweight loss in the following panels:
a) A and D.
b) A, B, and D.
c) A, B, C, and D.
d) A, C, and D.
e) C and D.
2) In Figure 1, panels A and D show two levels of coinsurance while B and C show two different deductibles. As a result, patients in the following panel(s) will consume an amount of treatment less than k:
a) C and D.
b) A, C, and D.
c) A, B, C, and D.
d) A and D.
e) A, B, and D.