Question

Explain how a change (upward shift or downward shift) in each of the following factors would alter the shape of the total product curve for medical care.

A. An increase of education spending.

B. An improvement in lifestyle.

C. An improvement in the environment

Answer 1

When people maintain good health with the help of factors like better education, better life style, good income and overall other enviornmental factors which keep them healthy, the total product curve takes upward sloping. Changes in lifestyle variables like exercising, maintaining good diet, intiatives to lower the enviornmental pollution in the surrounding area etc are the in direct means of medical care which are the main reason for the shifting of the total product curve upward.

A. An increase of education spending: The total product curve shifts upward as educated people likely to take better decisions and awareness for their healthy living

B. An improvement in lifestyle: Improvement in lifestyle automatically makes a person more aware towards his health by having good diet and good habits which keep them away from physical ailments leading to the total product curve upward moving.

C. An improvement in the enviornment: Initiatives taken to lower the enviornmental pollution, reducing the amount of carbon monoxide from the atmosphere etc are going on for the overall wellbeing of the globe. Besides most people prefer to change their area of living from the highly polluted to less polluted region. So improvement in the enviornment also helps the total product curve to move upward.