MULTIPLE CHOICE (1 point each - 12 points total, CIRCLE THE CORRECT ANSWER): 1. What is an example of er post moral hazard? a Spending more on cancer treatment than you would if you were paid a cash benefit of equal value. b Eating high-cholesterol foods knowing that heart bypass surgery is covered by your health insurance. c Driving recklessly after getting complete car-collision insurance. d Ending your attitude of being beyond ethical approaches to danger. 2. Say that households are mobile across cities and have similar preferences, then if city A offers higher real wages than city B, a City A has higher nominal wages than city B b City A has lower nominal wages than city B c City A has higher quality of life than city B d City A has lower quality of life than city B 3. OASDI is currently paid out of a Federal income taxes b Payroll taxes c Sales taxes d Property taxes 4. Which of the following programs covers prescription drug coverage? a Medicare Plan A b Medicare Plan B c Medicare Plan C d Medicare Plan D