Question

1 Markets and government regulations are both needed to provide healthcare goods and services effciently and effectively. Do you agree. Justify your answer.

2 Give an example of a healthcare circumstance in which both public and private regulation are present. Which serves the consumers better and why?

3 Assuming you are the manager of a company, how could you use behavioral economics to increase the number of insured employees in your firm?

Answer 1

1. Markets and government regulations are both needed to provide healthcare goods and services effciently and effectively.
Yes, I agree with the statement.
Market and government regulations are both necessary for an effective and efficient way to provide healthcare goods. This is because when the demand for healthcare good increase and the supply cannot meet this new demnad, the suppliers will tend to increase the prices of such goods but it will make the consumers or patients worse off, specially those who have lower marginal willingness to pay. Market regulators will make sure that the shortage of supply is met as soon as possible but in the meanwhile, it would suggest an increrase in price to meet the current demand. To curb this problem, the government must interfere by providing subsidies so that the burder of these shortage does not directly fall on the consumers or the producers. Therefore, both market and government regulations are necessary for healthcare goods and services, it helps the healthcare facilities run efficiently and effectively without any hindrance.