True or False:
1. The United States spends a larger fraction of national income on health care than any other country.
2. Investment in health care, like investment in human and physical capital, can shift a country’s production possibilities curve outward over time.
3. If the CPI does not adequately adjust for the increasing quality of medical care, it will result in overestimating increases in the cost of health care.
4. The quality of medical care demanded is quite sensitive to its price.
5. The majority of Americans do not have some kind of medical insurance.
6. Private insurance and public health care expenditures each account for a larger proportion of health care spending than that by consumers paid out of pocket.
7. Insurance coverage is likely to increase the total expenditures on health care from all sources.
8. The chronically ill are more likely to demand insurance than healthy people, because of adverse selection.