Discussion:
1. Every economy, as well as sectors within the economy including the medical care sector, must decide the following:
a. WHAT should be produced,
b. HOW the good/service should be produced,
c. For WHOM the good/service should be produced (distributed to), and
d. How to allow for growth and innovation. With respect to the medical care sector, how are these choices currently being made in the U.S. and how they differ from countries with national health system? What are the assumptions and value judgments underlying each of these choices?
2. What are the two basic tools of economics? Give an example of each with respect to health, medical services, and hospitals.
3. Explain how the two tools of economics are interrelated.
4. Prices serve various purposes, the most important is how to allocate inputs and how to distribute outputs to various population groups. For each purpose, give an application of the use of prices, or its lack thereof, in the medical care industry. For example, cosmetic medical services are priced in market and those who are willing and able to pay will receive these services.
5. What are the economic criteria for an optimal rate of output? How well are these criteria met with respect to the medical care sector?