Question

a) does USA deficit play a role in people's standard of living? Explain why

b) How is the "assymetric information & medical ethics" contributing to the healthcare cost?

Answer 1

A. It is a fact that in USA, deficit plays an important role in people’s standard of living because of which it depends on government expenditure in various services which are essential for the People’s standard of living but in the case of deficit when government is facing current account deficit then it is difficult for the government to fulfil the day-to-day requirements of the country and with this effect it is very difficult for the government to provide standard of living based services to the citizens.

In the presence of current account deficit it is mandatory for the government to first remove this deficit by applying the various policies then only government can take the initiative to provide the services based on the standard of living because it includes various types of subsidies provided by the government to the citizens so that they can able to handle the expenses incurred on the standard of living and goods and services.

B. The asymmetric information and medical ethics contributing in a positive way in the Healthcare cost means by following medical ethics it will raise the cost of healthcare in the country because it involves a basic guideline to save citizens life by applying all the necessary medical costs and it doesn’t relates to the medical expenses.

Medical ethics is very important now a days to improve the health of the citizens.

Practice of medical ethics are very valuable because it creates a sense of responsibility of the medical society to provide their services to the citizens and it is necessary to play an important role of not differentiating the citizens according to their status and paying capacity.