Answer the following statements true (T) or false (F)
1. The asymmetric information problem in health care implies that the demand for health care is a "supplier-induced demand".
2. The moral hazard problem created by health insurance induces consumers to under consume health care.
3. Health insurance induces the consumers to adopt less prevention and over consumption of health care.
4. The provision of health insurance leads to a dead weight loss due to an over-allocation of resources to health care.
5. Raising deductibles and co-payments in health insurance plans is one effective way to contain health care costs.
1. T
2. F
3. T
4. T
5. T
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