Answer the following questions as true or false.

1. If a new screening technique is perfect at detecting a disease before it develops and is able to prevent the disease from occurring, it must be cost effective and all insurance plans must cover it.

True

or

False

2. Compared with doctors who are paid on a capitated (per patient) basis by health insurers, doctors who are paid on a fee-for-service basis have incentives to provide more care than the optimal level.

True

or

False

3. A previously-uninsured person who enrolls in his employer-sponsored health insurance plan after being diagnosed with diabetes is an example of moral hazard.

True

or

False

4. Moral hazard is not a big social problem in countries with universal insurance programs like the United Kingdom, Germany, or South Korea.

True

or

False

5.The full economic cost of enrolling in medical school isn't that high and includes mainly direct costs such as tuition, room, and board for the school.

True

or

False

6. In employer-sponsored health insurance in the U.S., employers pay the largest share of insurance premiums so employees benefit a lot from being covered by employer-sponsored insurance plans.

True

or

False