Indicate whether each statement is true or false, and justify your answer. Be sure to state any additional assumptions you may need.

In the 1970s, researchers were worried that, while Americans were living longer than previous generations, they were actually less healthy during old age than before. This phenomenon is known as the “compression of morbidity.”

While it may seem intuitively obvious that health expenditures will increase as a population ages – older people after all are less healthy on average than younger people – in fact, several prominent health economists have argued that it is not aging per se, but rather some of the correlates of an aging population that cause health expenditures to rise as a population ages. For instance, Getzen (1992) argues that, at least in part, rising health expenditures with an aging population are due to the higher incomes and resources of the older population; health care is a normal good, so higher incomes lead to higher expenditures. In a similar manner, Zweifel et al. (1999) argue that the real problem with an aging population, at least as far as health care costs are concerned, is that there will be more people who are within a couple of years of dying. Since health care expenditures rise sharply close to the end of life, it is this, rather than population aging by itself, that leads to higher health care expenditures.

• Suppose that population aging in a given country is due entirely to an increase in life expectancy at age 65, rather than any other cause, and suppose further that Zweifel et al. (1999) are right and the rise in the set of people who are close to death causes higher health expenditures. Given these assumptions, would you expect per capita health care expenditures to rise or fall in the near future? What about total health expenditures?

• Suppose that Getzen’s finding is accurate, and the reason why population aging is correlated with higher health expenditures is because older populations tend to be richer than younger ones. If that is so, do rising health care expenditures mean higher or lower social welfare? Under these conditions, should policymakers be concerned about higher health care expenditures due to population aging?

Indicate whether each statement is true or false, and justify your answer. Be sure to state any additional assumptions you may need.

Aggressive natalist policies have successfully reversed birth rate declines in most European countries.

Indicate whether each statement is true or false, and justify your answer. Be sure to state any additional assumptions you may need.

Population growth in the developed world is contributing to population aging.

Accounts receivable are valued and reported on the balance sheet

a. in the investment section.

b. at gross amounts less sales returns and allowances.

c. at cash realizable value.

d. only if they are not past due.

List the costs and benefits of the following hypothetical policies.

a. The US government offers a $5 billion prize to the first drug company that develops a cure for Alzheimer’s disease.
b. The patent length for drugs to treat fatal diseases is reduced to five years, and all current patents for such drugs that are already more than five years old instantly expire.
c. The European Medicines Agency announces that it will instantly approve new drug applications that have shown any promise in treating Creutzfeldt-Jakob disease (also known as mad cow disease), even if there are safety concerns or if the evidence of efficacy is not conclusive.
d. The US government allows patients to write themselves prescriptions on weekends, when physicians are typically not available.

Consider Table 10.1, which has data on insurance status and medical expenditures for different types of professors at Adverse Selection University (ASU). In 2014, every employee of ASU was offered a full insurance contract at no premium. In 2015, ASU charged any employee who wanted to keep health insurance a $4,000 premium. As a result, all history professors dropped their coverage in 2015. Assume that the underlying health of ASU professors did not change much from year to year.
a. Is there evidence of moral hazard in this market? How do you know?
b. Is there evidence of adverse selection in this market? How do you know?
c. Explain how moral hazard and adverse selection combine to create a positive risk-coverage correlation in this market.
d. Could the data exhibit a positive risk-coverage correlation if one of these elements were absent? How does this complicate researchers’ efforts to find evidence of adverse selection?

Let

$$A = \begin{bmatrix} a_1 & \cdots & a_n \end{bmatrix}$$

be a row vector, and let

$$B = \begin{bmatrix} b_1 \\ \vdots \\ b_n \end{bmatrix}$$

be a column vector. Compute the products $AB$ and $BA$.

If a=<3, 0, -1>, find a vector b such that compa b=2.

Define estos términos del texto con tus propias palabras.

inmueble

One hundred forty percent of 310 is what number?

Factor the perfect square trinomial. $25 z^{2}-10 z+1$

Natalia likes to eat a healthy breakfast. Write an “X” next to each breakfast food from those listed below.

1.____ el cereal				6.____ el jugo de naranja 
2.____ los huevos				7.____ la pizza
3.____ la banana				8.____ el sándwich de jamón y queso
    4.____ la hamburguesa			9.____ los refrescos

5.____ la manzana 10.____ la sopa

For this exercise, let

$$\begin{array}{ll} \mathbf{A}=\left[\begin{array}{ll} 1 & 2 \\ 4 & 3 \end{array}\right], & \mathbf{B}=\left[\begin{array}{rr} -3 & 5 \\ 2 & -1 \end{array}\right], \\ \mathbf{C}=\left[\begin{array}{rr} 1 & -1 \\ -1 & 1 \end{array}\right], & \mathbf{D}=\left[\begin{array}{ll} 1 & 1 \\ 1 & 1 \end{array}\right], \\ \mathbf{E}=\left[\begin{array}{ll} 1 & 3 \\ 2 & 6 \end{array}\right], & \mathrm{F}=\left[\begin{array}{rr} 3 & 3 \\ -1 & -1 \end{array}\right], \\ \mathbf{0}=\left[\begin{array}{ll} 0 & 0 \\ 0 & 0 \end{array}\right], & \mathrm{I}=\left[\begin{array}{ll} 1 & 0 \\ 0 & 1 \end{array}\right] . \end{array}$$

Find the following. $\\$$$$\mathrm{E}+0$