Question

. For each of the following goods, briefly describe the allocation mechanism that is most commonly used in the United States:

            a. Pepsi cola

            b. gasoline

            c. medical care

Answer 1

(a) Planning of Resources - forecasting of resources -Resource Monitoring and Controlling Method -Identification of Resource Gaps

(B) The wisdom of fuel use minimization in the context of efficient resource allocation: 2. The validity of global comparisons; 3. The impact of urban structure on travel: 4. The potential for rail transit and modal choice; and 5. The debate on the land impact of transit development.

(c) Applying economic thinking to an understanding of resource use in patient care is challenging given the complexities of delivering health care in a hospital. Health-care markets lack the characteristics needed to determine a" market" price that reflects the economic value of resources used. However, resource allocation in a hospital can be analyzed by using production theory to determine efficient resource use. The information provided by hospital epidemiologists is critical to understanding health-care production processes used by a hospital and developing economic incentives to promote antibiotic effectiveness and infection control.