1. Using the relationship between the price of a visit to a physiotherapist and the quantity of visits demanded, define and distinguish among the direction, the slope, and the position of an economic relationship.
2. The northern community of Assiniboine Narrows has a population of 12,000. It has one medical clinic with three doctors, each working 40 hours per week. Each doctor sees four patients per hour. The clinic would like to hire one or two more doctors.
The mortality rate in the community is 11 per 1,000 population. This rate will fall to 9.5 per thousand if one doctor is added and to 9 per thousand if two doctors are added. Each new doctor will cost the system $250,000 per year.
An alternative plan is to bring in two home care nurses. Each home care nurse will see two patients per hour. The addition of the first nurse will reduce the mortality rate by 0.8 per thousand, and the addition of a second nurse will reduce the mortality rate by 0.6 per thousand. Each home care nurse will cost the system $100,000 per year.
Use calculations to examine the alternatives available to Assiniboine Narrows. Then, based on your calculations, make a recommendation as to the preferred course of action. Ensure that you calculate the output and outcome of each additional health professional.
3. Green Shield Insurance provides NEMO Corporation with coverage for prescriptions, dental work, and extended health services. Each subscriber uses $435 worth of dental services per year; $410 worth of prescriptions per year; and $385 worth of extended health coverage per year. Green Shield has a 25 percent copayment clause, and a loading factor of 65 percent. NEMO will pay 50 percent of the plan costs. What is the annual and monthly premiums charged to the employees of NEMO corporation?