True or False:
1. The chronically ill are more likely to demand insurance than healthy people, because of moral hazard.
2. Physical exams are one way insurers try to reduce their adverse selection risks from health insurance.
3. An increasing share of older people in the population would tend to increase the demand for health care spending.
4. The supply of health care has decreased in recent decades.
5. The demand for health care has increased faster than supply in recent decades.
6. When doctors are paid on a fee-for-service basis, they are more liable to err by recommending too many health care services rather than too few.
7. Because of long-term relationships with primary physicians, people are often reluctant to search for new physicians even when fees increase significantly.
8. The incentives of HMO doctors to provide medical care are greater than those of traditional fee-for-service doctors.