Question

Explain the costs of devoting more and more resources to health care expenditures (Tip: I am looking for a specific concept). Provide an example of this concept.

Answer 1

In the recent times, public as well as the governemtn has become more and more consious about the increasing heath issues of the population. This calls for an increment in the expenditure of healthcare. The increasing health expenses obviosly ensures a number of benefits. It would ensure the proper health of the population, government investment in the heath care services ensure equitabilty in the sector etc. The amount spen upon the enhancement of the heathcare services comprises a large portion of the GDP and bears some adverse costs as well.

i) It has been often argued that the huge lumpsum amount of expenditure made upo the heath care services does not yeild similar results. This can be expained by more or less similar life expectancy and infant mortality rates since years even after huge investments.

ii) The building of the infrastructue of the heath institues, their proper peration and maintainence involves huge expenses, which could not be made by private entrepreneurs and shall be borne by the government, which may lead to budget deficit.

iii) The opportunity costs of making huge heath care expenditure is also high, as it can be invested in any other sector.