Question

In: Economics

According to the Grossman Model, as people age their optimal health capital will

According to the Grossman Model, as people age their optimal health capital will



A.            Rise



B.            Fall



C.            Stay the same



D.            The Grossman Model modeled demand for insurance

Solutions

Expert Solution

Ans) the correct option is b) fall

Health capital decreases because the depreciation rate of health capital continues to rise.

Rahul Sunny answered 2 years ago
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