The expansion of health care coverage to include more uninsured persons creates both external costs and external benefits. a.) Using benefit cost analysis along the lines of "Pricing the Priceless" discuss the U.S. healthcare system, now largely privatized, and list one such cost (think opportunity cost) and one such benefit (think economies of scale, spreading disease, research and innovation) from expanding health care coverage to a more public (universal) position in our society. Explain the cost and the benefit in economic terms (use the article and textbook, cite sources). b.)Then, provide two reasons why public (universal) health care systems like ones in Denmark and Canada can be viewed as public goods (think excludable, non- excludable, rivalrous, non rivalrous, free rider problem). Explain your reasons. Helpful hints: So, the basic questions are what makes public health a public good; does benefit/cost analysis lend itself to analyzing the questions of public health implementation (maybe not) and if not why is it deficient for that purpose; will it have the effect of inhibiting competition or research and development (opportunity costs?); what is accessibility/delivery now and under public health (again, public good question); what are marginal benefits and marginal costs (opportunity costs) of privatized health care vs. more universal health care?
The expansion of health care coverage to include more uninsured persons creates both external costs and external benefits. a.) Using benefit cost analysis along the lines of "Pricing the Priceless" discuss the U.S. healthcare system, now largely privatized, and list one such cost (think opportunity cost) and one such benefit (think economies of scale, spreading disease, research and innovation) from expanding health care coverage to a more public (universal) position in our society. Explain the cost and the benefit in economic terms (use the article and textbook, cite sources). b.)Then, provide two reasons why public (universal) health care systems like ones in Denmark and Canada can be viewed as public goods (think excludable, non- excludable, rivalrous, non rivalrous, free rider problem). Explain your reasons. Helpful hints: So, the basic questions are what makes public health a public good; does benefit/cost analysis lend itself to analyzing the questions of public health implementation (maybe not) and if not why is it deficient for that purpose; will it have the effect of inhibiting competition or research and development (opportunity costs?); what is accessibility/delivery now and under public health (again, public good question); what are marginal benefits and marginal costs (opportunity costs) of privatized health care vs. more universal health care?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The expansion of health care coverage to include more uninsured persons creates both external costs and
external benefits.
a.) Using benefit cost analysis along the lines of "Pricing the Priceless" discuss the U.S. healthcare system,
now largely privatized, and list one such cost (think opportunity cost) and one such benefit (think
economies of scale, spreading disease, research and innovation) from expanding health care coverage to
a more public (universal) position in our society. Explain the cost and the benefit in economic terms (use
the article and textbook, cite sources). b.)Then, provide two reasons why public (universal) health care
systems like ones in Denmark and Canada can be viewed as public goods (think excludable, non-
excludable, rivalrous, non rivalrous, free rider problem). Explain your reasons.
Helpful hints: So, the basic questions are what makes public health a public good; does benefit/cost
analysis lend itself to analyzing the questions of public health implementation (maybe not) and if not why
is it deficient for that purpose; will it have the effect of inhibiting competition or research and development
(opportunity costs?); what is accessibility/delivery now and under public health (again, public good
question); what are marginal benefits and marginal costs (opportunity costs) of privatized health care vs.
more universal health care?
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