Please limit your responses to a maximum of 150 words for each question:
1) Government involvement in health care often addresses (1) information issues that hinder market functioning and (2) externalities. For each of these problems, give an example of a health policy in the Affordable Care Act that is intended to address it. Outline why one of the two policies that you chose to discuss may have also negative consequences.
2) Explain the difference between cost shifting and price discrimination. In what situations/contexts is price discrimination a good thing from a societal perspective?