How can you measure health? Do you think that education makes people more efficient producers of their own health? (4+6) 2. Why might older people's health care expenditures increase in the Grossman model even though their desired health stock may be lower? (10) 3. Suppose that we wish to compare the health status of two groups of people. What variable might we use to measure the status? What variables might we wish to control in order to draw the appropriate inferences? (7+3) 4. Lifestyle may be the most important determinant of health status but changing lifestyles may not be the least costly way to improve population health status. Explain the circumstance under which this opinion could be true? Is it likely to be true in reality? (7+3) 5. Discuss several issues facing policymakers with regard to health care spending. (10) 6. How does insurance address the uncertainty pertaining to health? Do you think that a risk- averse consumer will buy insurance? (5+5)
