Study Question Set #4 for David Cay Johnston's Free Lunch (pg. 208-293)

1. What is the difference in percentage cost of health care (as a share of the economy) between the U.S and most modern countries?



2. Why did the early HMOs receive subsidies from the government?



3. How did the conversion of non-profit HMOs to for-profit health maintenance companies enrich people?



4. What was the difference in compensation for Leonard Schaeffer after he turned Blue Cross of California into Wellpoint?



5. Why does Johnston say that ADam Smith would not agree that a complex market like health care would be fairly regulated by market forces?



6. What government agency received a shot in the arm with respect to funding concerning the shift of hospitals from non-profit status to for-profit status? Why?



7. From what practice is the modern hedge fund derived?



8. What does johnston suggest hedge funds are doing instead of taking advantage of price gaps?



9. Why do cable television shows that tout stocks vilify the Sarbanes-Oxley Act?



10. Hos does Johnston say the U.S. ranks out of 20 modern nations in terms of material well-being for children and what is the cost of this on an annual basis according tothe Center for American Progress?