1. “Medical interventions were not important in the historical declines in mortality rates, but that does not imply that medical research was unimportant.” Explain this viewpoint.

2. Chapter 5 Exercise 1. In addition to showing how the curve changes when E is increased to 15 discuss this in words.

3. Chapter 6 Exercise 4

4. Given the nature of the cost function and possible economies of scale and scope, does a policy encouraging large, centralized hospitals seem wise? Will market forces tend to reward centralization of hospital services?

5. Chapter 7 Exercise 3

6. Chapter 7 Exercises 4 and 5

(Chapter 5 exercise 1 is on page 104. Chapter 6 exercise 4 is on page 128. Chapter 7 exercise 3,4,5 is on page 146, 147 in the attached textbook.)

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