You have to answer all the questions to get full credit-
Now you know more- elasticity, and Public sector economics. Lets start talking about Health Care. We will carry forward this discussion in the coming modules as well.
What are the pros and cons of Health Care Reform? Present arguments from both sides, then tell me WHICH side you agree with, and WHY. Important issues to address are
Scarcity of resources,and the current market for health care
Elasticity of health care demand, and health care supply,
Is government intervention required ie is there market failure and/or public good scenario? Does economics indicate that this change will help Americans achieve higher living standards?
Government spending, and resource allocation- what role should the government play and how can government fund health care?
Could we make the health care "market' more efficient?
Theory to Remember-
Price Elasticity: Elasticity means responsiveness- the extent to which a change in price will cause quantity demanded to change, other things held constant.
Elasticity and Total Revenues: There are three relationships among the types of price elasticity and total revenue.
Elastic demand: A negative relationship exists between changes in price and changes in total revenues.
Unit-elastic demand: Changes in price do not change total revenues.
Inelastic demand: A positive relationship exists between changes in price and total revenues.
Market Failures and Externalities: In a pure market system, competition generates economic efficiency only when individuals know and must bear the true opportunity costs of their actions.
Externalities: A consequence of an economic activity that spills over to affect third parties,i.e., parties who are not directly involved in a given activity or transaction
Public Goods: Public goods are goods to which the principle of rival consumption does not apply and that are jointly consumed by many individuals simultaneously.
Paying for the Public Sector: Systems of Taxation: The three sources of funding for governments are user charges, taxes, and borrowing.
Tax Rates and Tax Revenues: The two fundamental issues that governments face when they try to fund their operations by taxing market activities are how tax rates can be set to maximize tax revenues for the government.
Taxation from the Point of View of Producers and Consumers: Taxes on goods and services are levied by all levels of government. These taxes affect market prices and quantities.
When governments levy taxes on producers and require them to charge these taxes when they sell their output, the effect is to cause a decrease in supply.
The decrease in supply caused by the imposition of a tax causes equilibrium price to increase and equilibrium quantity to decrease.
Who Pays the Tax? Both producers and consumers end up paying the tax. The amount paid by consumers is the difference between the (higher) equilibrium price after the tax is imposed and the initial equilibrium price. The amount paid by the producers is the difference between the initial equilibrium price and (lower) price net of tax after the tax is imposed.
Remember that this can be controversial because denial of health care can result in permanent disability or death, So BE NICE TO EACH OTHER.
Here are some articles that you may want to read- Please dont read all :)
Health Care Reform Timeline (Links to an external site.)Links to an external site.
Obama's healthcare reforms: your guide to the key provisions (Links to an external site.)Links to an external site.
ObamaCare: Pros and Cons of ObamaCare (Links to an external site.)Links to an external site.
Obamacare: Is it good or bad for Americans? (Links to an external site.)Links to an external site.
Is Obamacare Good or Bad? It's All a Matter of Perspective (Links to an external site.)Links to an external site.
U.S. Healthcare Ranked Dead Last Compared To 10 Other Countries (Links to an external site.)Links to an external site.
Now you know more- elasticity, and Public sector economics. Lets start talking about Health Care. We will carry forward this discussion in the coming modules as well.
What are the pros and cons of Health Care Reform? Present arguments from both sides, then tell me WHICH side you agree with, and WHY. Important issues to address are
Scarcity of resources,and the current market for health care
Elasticity of health care demand, and health care supply,
Is government intervention required ie is there market failure and/or public good scenario? Does economics indicate that this change will help Americans achieve higher living standards?
Government spending, and resource allocation- what role should the government play and how can government fund health care?
Could we make the health care "market' more efficient?
Theory to Remember-
Price Elasticity: Elasticity means responsiveness- the extent to which a change in price will cause quantity demanded to change, other things held constant.
Elasticity and Total Revenues: There are three relationships among the types of price elasticity and total revenue.
Elastic demand: A negative relationship exists between changes in price and changes in total revenues.
Unit-elastic demand: Changes in price do not change total revenues.
Inelastic demand: A positive relationship exists between changes in price and total revenues.
Market Failures and Externalities: In a pure market system, competition generates economic efficiency only when individuals know and must bear the true opportunity costs of their actions.
Externalities: A consequence of an economic activity that spills over to affect third parties,i.e., parties who are not directly involved in a given activity or transaction
Public Goods: Public goods are goods to which the principle of rival consumption does not apply and that are jointly consumed by many individuals simultaneously.
Paying for the Public Sector: Systems of Taxation: The three sources of funding for governments are user charges, taxes, and borrowing.
Tax Rates and Tax Revenues: The two fundamental issues that governments face when they try to fund their operations by taxing market activities are how tax rates can be set to maximize tax revenues for the government.
Taxation from the Point of View of Producers and Consumers: Taxes on goods and services are levied by all levels of government. These taxes affect market prices and quantities.
When governments levy taxes on producers and require them to charge these taxes when they sell their output, the effect is to cause a decrease in supply.
The decrease in supply caused by the imposition of a tax causes equilibrium price to increase and equilibrium quantity to decrease.
Who Pays the Tax? Both producers and consumers end up paying the tax. The amount paid by consumers is the difference between the (higher) equilibrium price after the tax is imposed and the initial equilibrium price. The amount paid by the producers is the difference between the initial equilibrium price and (lower) price net of tax after the tax is imposed.
Remember that this can be controversial because denial of health care can result in permanent disability or death, So BE NICE TO EACH OTHER.
Here are some articles that you may want to read- Please dont read all :)
Health Care Reform Timeline (Links to an external site.)Links to an external site.
Obama's healthcare reforms: your guide to the key provisions (Links to an external site.)Links to an external site.
ObamaCare: Pros and Cons of ObamaCare (Links to an external site.)Links to an external site.
Obamacare: Is it good or bad for Americans? (Links to an external site.)Links to an external site.
Is Obamacare Good or Bad? It's All a Matter of Perspective (Links to an external site.)Links to an external site.
U.S. Healthcare Ranked Dead Last Compared To 10 Other Countries (Links to an external site.)Links to an external site.
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