Question

Offered Price $ 14.00

Columbia ECON 294 Microeconomics Discussions

Question # 00020028
Subject: Economics
Topic: Macroeconomics
Due on: 07/16/2014
Posted On: 07/16/2014 04:11 AM

Rating:
4.1/5
Expert tutors with experiences and qualities
Posted By
Best Tutors for school students, college students
Questions:
15717
Tutorials:
15379
Feedback Score:

Purchase it
Report this Question as Inappropriate
Question
You are asked to discuss the current state of the health care industry using the tools we have studied this semester.

Review the Discussion Instructions for this week and you will find a list of pros and cons related to this industry along with a short explanation of heath insurance and how it relates to the debate. You are asked to develop your own solution to this social issue. You answer in terms of what you think is the socially optimal solution versus the economic least cost solution, but you must understand and explain the economic costs of your decision.


Week 7 Discussion: The Rising Costs of Health Care

This week we take on the most pressing Microeconomic issue of our time. According to the text, the income elasticity of health care is as high as 1.5 meaning a 1% increase in income would create a 1.5% increase in spending on health care services. Combine this with the fact that health care as a product or service is very inelastic and you've got an industry that will increase in size (revenue) as the price of health care rises.

There are things that make the health care industry different than many industries. Your book lists four reasons:

1. Ethical and equity considerations
People tend to believe that health care is more of a right than a privilege and for someone to be denied health care is seen as unfair.

2. Asymmetric information
Consumers of health care services are not experts on the ailments nor the treatments options that are available, therefore we must rely on our doctors to give us advise on what to do. This is important because you are not able to make the normal trade-offs you would normally make in a purchase decision.

3. Spillover benefits
Society receives benefits from health care that are not fully represented by the price, in other words, a healthy work force is a more productive workforce and an immunized population is one that is not as likely to get sick.

4. Third-party payments - insurance
The mere fact that you do not have to pay the full cost of your health care causes you to over-consume health care services. Does this lead to overconsumption?

Given these elements you're asked to develop a plan to improve or fix the health care system. I recommend consulting the OECD Health Project . Okay, so no great economists, politicians or health industry analysts have done it yet. But then, they aren't you, they don't have your experiences and they may not think outside the box. So tell us:

1. What in your opinion are the problems in the health care industry that are fixable.

2. What in your opinion are the problems that are NOT fixable.

3. Your suggestions for the fix.
Tutorials for this Question
Available for
$ 14.00

Columbia ECON 294 Microeconomics Discussions

Tutorial # 00019431
Posted On: 07/16/2014 04:13 AM
Posted By:
Best Tutors for school students, college students expertden
Expert tutors with experiences and qualities
Questions:
15717
Tutorials:
15379
Feedback Score:
Report this Tutorial as Inappropriate
Tutorial Preview … and the rest would be the overheads. Health care…
Attachments
Columbia_ECON_294_Microeconomics_Discussions.docx (15.14 KB)
Preview: problem of health care for the people. The healt.....
Purchase this Tutorial @ $14.00 *
* - Additional Paypal / Transaction Handling Fee (3.9% of Tutorial price + $0.30) applicable
List of Main Subjects
Accounting
Anthropology
Architecture
Art
Asian Studies
Astronomy
Biology
Business
Chemistry
Communications
Computer Science
Economics
Education
Engineering
English
Finance
Foreign Languages
Gender Studies
General Questions
Geography
Geology
Health Care
History
Kindergarten
Law
Linguistics
Literary Studies
Marketing
Mathematics
Music
Nursing
Performing Arts
Philosophy
Physics
Political Science
Psychology
Religious Studies
Sociology
Statistics
Urban Planning and Policy
View all subjects...
Loading...