Indicate whether the statement is true or false and justify your answer. Be sure to cite evidence from the chapter and state any additional assumptions you may need. Review the basic assumptions of the Grossman model before answering these questions. 1 In real life, investments in health can generate long-lasting benefits, but the Grossman model neglects this aspect of health. 2 In the framework of the Grossman model, an individual's level of health is completely controlled by her actions. Thus, in any given period, an individual is unconstrained in her choice of health status. 3 In the Grossman model, the marginal efficiency of investment in health care declines as health improves. 4 Aging shifts the marginal efficiency of investment in health curve inward. 5 An hour spent exercising always pays for itself by decreasing the time spent sick by more than an hour. 6 Assume the PPF is as pictured in Figure 3.3. People might choose point E as their optimum even if they value the home good Z. 7 In the Grossman model, optimal health status declines with age. 8 The fact that older people spend more on health care is evidence against the Grossman model, which predicts that spending will decline as increases. 9 People who drop out of high school are able to produce more health than college graduates because they have more free time to invest in health production. 10 According to the Grossman model, people choose an optimal time to die (barring any unforeseen accidents)