Answer the following statements true (T) or false (F)

1) Asymmetric information in the health care market has increased the supply of health care.
2) A moral hazard problem arises in the health care market because health insurance
encourages people to overconsume health care.
3) Insurance companies use deductibles and copayments to control increases in the amount of
health care demanded.
4) Because employer payments for health insurance are not subject to income or payroll taxes,
government in effect provides a subsidy to health care.

1) F
2) T
3) T
4) T