Question

Question: Why health and health care economics?

A. List and explain the five reasons why some economists may be concerned with health and health care that were discussed in class.

B. Provide a practical example of one of the reasons you list in Question 3, Part A.

C. Evaluate each of the five reasons you provided in Question 3, Part A in terms of whether you believe that these are areas that should be of focus to society.

Answer 1

Assuming that this is question 3.

A. List and explain the five reasons why some economists may be concerned with health and health care that were discussed in class.

Health is necessary to bring better human capital and achieve economic growth. Healthcare is a merit good which has more benefits than costs and govt. spends huge money on this head every year. Due to health problems many people who are living slightly above poverty line remain vulnerable to go below it if any health problem occurs. Healthcare spending has opportunity costs and govt. can spend this money on other heads like education. Health and healthcare can contribute towards advanced rate of development for a country.

B. Provide a practical example of one of the reasons you list in Question 3, Part A.

Example- Scandinavian countries spend good amount of GDP on health, more than 11% and score very high on life expectancy in HDI Calculations that considers, health, education and standard of living. India spends less than 2% and scores low on healthcare aspects.

C. Evaluate each of the five reasons you provided in Question 3, Part A in terms of whether you believe that these are areas that should be of focus to society.

Health is necessary to bring better human capital and achieve economic growth:USA, Wetsern European countries are better off as they spend good amount on health. They are developed countries and health plays important role in this. However, high spending also involves malpractices and taxes are high to compensate for this benefit.

Healthcare is a merit good which has more benefits than costs and govt. spends huge money on this head every year.

As discussed in part A. and Part C above huge money is required. Taxes are raised and indirect taxes increase burden on poor people.

Due to health problems many people who are living slightly above poverty line remain vulnerable to go below it if any health problem occurs: Any major illness if not insured can eat persons lifetime savings. Eg. Cancer. Hence, a person may look not poor but is actually vulnerable and can take family in poverty trap.

Healthcare spending has opportunity costs and govt. can spend this money on other heads like education. Health and healthcare can contribute towards advanced rate of development for a country.

Eg. Indian govt. is not able to spend money on more creative aspect like health due to healthcare expenditure. This is contributing to double problems of health and lack of good quality education in India.