Indicate whether the statement is true or false, and justify your answer.Suppose that a long-time nicotine addict who is trying to quite smoking decides he wants a cigarette, but his friends successfully restrain him. The friends’ intervention has an ambiguous effect on the addict’s welfare.
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Indicate whether the statement is true or false, and justify your answer.
Suppose that a long-time nicotine addict who is trying to quite smoking decides he wants a cigarette, but his friends successfully restrain him. The friends’ intervention has an ambiguous effect on the addict’s welfare.
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- Indicate whether the statement is true or false, and justify your answer.In a study of babies born during the Dutch famine toward the end of World War II, those exposed to the famine in utero were more likely than those not as exposed to be obese as adults.Indicate whether the statement is true or false, and justify your answer.In the 1970s, researchers were worried that, while Americans were living longer than previous generations, they were actually less healthy during old age than before. This phenomenon is known as the “compression of morbidity.”Indicate whether the statement is true or false, and justify your answer.People tend to underestimate the calories counts of food not prepared for them at home.
- Indicate whether the statement is true or false, and justify your answer.In the US, well-educated males can expect to live longer than poorly educated males.Indicate whether the statement is true or false, and justify your answer.Results from the Oregon Medicaid Experiment suggest that having health insurance has a positive impact on health status.Indicate whether the statement is true or false, and justify your answer.While obesity generally results in higher per-year medical costs, obese individuals do not typically have higher average lifetime medical costs than non-obese individuals because they do not live as long.
- Indicate whether each of the following examples of behavior is consistent with the utility-maximization framework of traditional economics or is better explained by concepts developed by behavioral economists. Example Consistent with the Predictions of Traditional Economic Theory More Effectively Addressed by Behavioral Economics There are people who pursue a degree in theater rather than engineering, even though engineering careers are usually much higher-paying. Some people treat $55 they earn differently from $55 they win in a random drawing. Some people would pay money to lower the incomes of others. People at all-you-can-eat restaurants eventually leave, even though they could continue eating for free.Indicate whether the statement is true or false, and justify your answer.New York has seen a majority of people change their behaviors because of the recent requirement that restaurants list the calorie counts for all their menu items.Multiple Choice Adverse selection describes a situation where an individual's demand for insurance is positively correlated with the individual's risk of loss. Adverse selection occurs when someone increases their exposure to risk when insured. This can happen, for example, when a person takes more risks because someone else bears the cost of those risks. The relationship between smoking status and mortality provides a good illustration for adverse selection, especially in the case in which a life insurance company did not vary its premiums according to smoking status of its customers. To counter the effects of adverse selection, insurers may offer premiums that are proportional to a customer's risk.
- Indicate whether the statement is true or false, and justify your answer.Many countries in the world have experienced increases in the number of obese individuals in their population, but only the US has seen increases in childhood obesity.Indicate whether each statement is true or false, and justify your answer.The fact that total expenditures on heart attack care increased between 1984 and 1991 is good evidence that the price of surviving a heart attack increased.Indicate whether the statement is true or false, and justify your answer.Aggressive natalist policies have successfully reversed birth rate declines in most European countries.