Chapter 15 The Health Policy Conundrum3 10.If a country is productively efficient and hence on its own health production frontier,it is spending the optimal amount of money on health care FALSE.It is possible,for example that the marginal dollar spent on edu cation or parks produces more utility for the population than the margina dollar spent on health care.Such a country is said to be allocatively ineffi- cient since it spends too much on health care relative to other productive ac- tivities.Since the country isn its health production frontier shifting money othe es will】 health,bu e the rall welfa of t population.The opposit s al ossible-the country on its health prod tion frontier spends too little on health care and too much on other activities 11.If health disparities exist within a country,then it cannot be operating on its health production frontier FALSE.Countries whose subpopulations vary widely in income levels or in their preferences for unhealthy habits may appear to be productively in- efficient on average,even though each individual subpopulation with the country is on the health production frontier. Bhattacharya,Hyde &Tu013Chapter 15| The Health Policy Conundrum | 3 10. If a country is productively efficient and hence on its own health production frontier, it is spending the optimal amount of money on health care. FALSE. It is possible, for example, that the marginal dollar spent on edu￾cation or parks produces more utility for the population than the marginal dollar spent on health care. Such a country is said to be allocatively ineffi- cient since it spends too much on health care relative to other productive ac￾tivities. Since the country is on its health production frontier, shifting money to other activities will reduce health, but increase the overall welfare of the population. The opposite is also possible – the country on its health produc￾tion frontier spends too little on health care and too much on other activities. 11. If health disparities exist within a country, then it cannot be operating on its health production frontier. FALSE. Countries whose subpopulations vary widely in income levels or in their preferences for unhealthy habits may appear to be productively in￾efficient on average, even though each individual subpopulation with the country is on the health production frontier. 3 ￾c Bhattacharya, Hyde & Tu 2013