Question

List 5 economic principles of healthcare in the United Kingdom, explain those principles in 2 sentences for each principle, include link where reference came from.

Answer 1

The 5 economic principles of healthcare in United kingdom are -

1. Opportunity cost
2. Scarcity
3. supply and demand
4. efficiency
5. equity

Explanation of Principles

1. Scarcity -   Scarcity means when there are limited amount of resources in our society so we want tto use those resources in the best possible. Health care is an economic good since resouces available in our economy is limited and we can use only upto certain amount of that for health care service that too in the best possible way. Even the society want to health care but we have to use those resouces only upto that extent that it do not disbalance the economy. For health care we are not able to fulfill our needs infront of want that society demands this is known as scarcity of resources in health care.

2. Demand and supply - It will be very intresting to know the demand of health care as demand of health care is not usually like those of other goods . Its not demanded on regular basis it is demand only to improve the health care services. As I have mentioned in the above point that health care is an economic goods , the demand of health care is only to improve health care services. These services when demanded by the economy can be manfuctured and people are obviously willing to pay for those improvements as it want was demanded by them only. The supply of health care can be explained by two ways one in which there is perfect comepetition., even though the demand is high for health care they have to supply those in limited way and that too at least price. But usually health care system do not fall under this category. The second one is monopoly here, usually health care services fall here like pharmaceutical companies. In monoply they have huge profit margin that too with low output and are ready to pay for it as health care is very important Hence here the supply of health care is low and profit is high

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