Image transcription text A. True/False Explain. Indicate whether each of the following statements is true or false and then explain why you think this. Include
Image transcription text A. True/False Explain. Indicate whether each of the following statements is true or false and
then explain why you think this. Include in your explanation any pertinent institutional details
and economic reasoning (including appropriate graphs and equations). provide concise,
clear answers with minimal irrelevant detail. Explanation is required. 1. Policymakers in at least 14 states in the US have in recent history passed laws called
"community-rating" laws. The idea of these laws is that, since individual private health
insurance markets don’t seem to function very well, leaving many older and sickly
people unable to purchase affordable insurance, community rating laws impose
restrictions on prices that insurance companies are allowed to charge. Consider a
community rating law that forces insurance companies to charge the same price to all
individuals (and forces insurance companies to sell insurance to anyone who is willing to
pay the chosen price). [5 points] True or false: the Rothschild-Stiglitz model suggests that this law will old and
sickly people gain access to insurance.
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