Question

Do you agree or disagree with the following statement: individual with a lower endowment of health will require fewer inputs to achieve the same health stock than will an individual with a higher endowment. Why or why not?

Answer 1

I agree with this statement that is, individual with a lower endowment of health will acquire fewer input to achieve the same health stock than will an individual with a higher endowment. Individual demand medical care ( eg :- invest time and consume medical gooda and services ) for the consumption benefits ( health provides utility) that good health provides. Health is a productive good which produces healthy day. Greater health stock leads to more healthy days - however with diminished returns. Benefits of good health are greater for high way workers.so, they demand higher optimal health stock.

The more educated people are , the less costly it is to generate health resulting in a high optimal health stock for this group. Individuals will allow resources inorder to produce health capital. Health is capital that produces service consumed over the individuals lifetime. Economists view health as a stock that depreciates with age, can acquire value by purchasing medical services etc is no longer a viable stock when health falls below critical level. Investing in your health like you would a good allows for efficient allocation of time ( not spend in sickness) and more available to earn money and pursue pleasurable activities.

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