If health care spending is already on the flat-of-the-curve, it ...

[lak]

If health care spending is already on the flat-of-the-curve, it may not be possible to buy improved health status by increasing spending. In this situation, the best way to improve health status may be to
 a. increase the availability of government health insurance.
  b. invest in biotechnology to determine the genetic factors that improve health.
  c. improve life-style decisions by reducing smoking, alcohol consumption, and drug use.
  d. improve access to medical care.
  e. improve overall educational attainment so people can better follow the advice from the medical community.

Question 2

If bargaining is costless, the assignment of property rights for an externality:
 a. has no impact on the possibility of an efficient outcome and no distributional impact.
  b. has no impact on the possibility of an efficient outcome but does have a distributional impact.
  c. does have an impact on the possibility of an efficient outcome but has no distributional impact.
  d. does have an impact on the possibility of an efficient outcome and does have a distributional impact.

[Animal_Goddess]

Answer to Question 1

C

Answer to Question 2

b