Question

Complete the sentence.

In the Canadian healthcare system​ _______.

A. the quantity of healthcare produced is greater than the efficient quantity

B. the quantity of healthcare is determined at the quantity at which marginal social benefit equals marginal social cost

C.the quantity of healthcare is determined at the quantity at which marginal private benefit equals marginal social cost

D.the government produces a fixed quantity of healthcare

Answer 1

In the Canadian healthcare system​, the quantity of healthcare is determined at the quantity at which marginal private benefit equals marginal social cost.

A study conducted in 2010 states that there seemed to be variations in health care provided across regions respective to the different provinces in Canada. From the study, it was found that the hospital admission rates are differed according to the number of people and what province they are living in. Generally, provinces with low population will have more hospital admission rates as there are lack of doctors and hospitals in that region. Another study conducted by the Canadian Institute for Health Information came to a strange analysis that there are differences in the efficiency of health care regionally. Regions which are similar in factors such as education levels and immigration numbers will have different efficiency levels in health care. After all, if increased efficiency of the current public health care was set as a goal, the death rate could be decreased by 18%-35%. Another study from the Canadian Institute for Health Information indicates about several ways the efficiency of health care system could be improved. That study also found out that, physician leadership and engagement of the care providers could harvest great achievements in the case of efficiency. Also, that study stated about the information exchange and interaction between health providers and government figures and flexible funding would also leads to improvement and thus, will solve the problem of differences in regional care by allowing regions to determine the requirements of that population and meet those requirements much more efficiently by permitting target-specific allocation of funds.