Question One (One-page single-spaced or a double-spaced essay, it should be about two pages.)

Define and provide an original example of the concepts listed below.

Discuss their significance in determining the efficient functioning of a medical market.

Moral Hazard

Adverse Selection

Asymmetric Information

Third-Party Payer

Cream Skimming

Question Two (One-page single-spaced or a double-spaced essay, it should be about two pages.)

Write an essay in which you

Describe the theory of physician-induced demand for medical services.

Explain how the dual nature of the physician’s role as both advisor and provider supports the induced demand theory.

Identify and explain what implications physician-induced demand has for healthcare policy.

Discuss how health insurance reinforces physician-induced demand.

Discuss what the natural limits to the alleged problem of physician-induced demand are.

Question Three (One-page single-spaced or a double-spaced essay, it should be about two pages.)

Write an essay in which you

Describe the different characteristics of for-profit and not-for-profit hospitals.

Discuss whether the non-for-profit hospital status eliminates the for-profit behavior. Explain your answer.

Define cost-plus pricing and discuss how it affects the hospital's behavior.