Suppose a household does not carry health insurance. Can we conclude that this reflects failure of insurance markets? Why or why not? Using Figure 11-1, illustrate the probability that someone will...

Suppose a household does not carry health insurance. Can

we conclude that this reflects failure of insurance markets?

Why or why not?

Using Figure 11-1, illustrate the probability that someone

will obtain insurance for treatment for

(a) A hangnail

(b) A broken arm

(c) A “bad hair” day

(d) Viral meningitis