Health Economics
14th Edition
ISBN: 9781137029966
Author: Jay Bhattacharya
Publisher: SPRINGER NATURE CUSTOMER SERVICE
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Question
Chapter 3, Problem 12AP
(a)
To determine
The graphical representation of old PPF (
(b)
To determine
The graphical representation of new PPF (production possibility frontier).
(c)
To determine
The impact of miracle pill on H*.
(d)
To determine
The impact of miracle pills on jogging.
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Show how a consumer would choose between medical care and health(y) behavior activities using the graphical representation of the consumer choice model (assume that “amounts” of healthy behavior have “costs” or prices). How might health education affect this choice? What if medical care becomes more productive (more health benefit per “unit” of medical care consumed)? What if medical care becomes cheaper? Explain in terms of the model (i.e. what does it change in the model).
Show how a consumer would choose between medical care and health(y) behavior activities using the graphical representation of the consumer choice model (assume that “amounts” of healthy behavior have “costs” or prices).
Suppose that you graph nations' health expenditures against income and see that the US's point lies below others (like
in the stylized figure below). From the graph below, it appears that the US is However, this may not be the case if
C
Health
Switzerland
UK
US
Health expenditures
HPF
productively efficient; The US has a population that prefers spending their resources on health
productively inefficient; The US has a population that prefers spending their resources on health
productively efficient; The US has lower levels of inherent health, therefore it has its own HPF which is lower than
the others.
productively inefficient; The US has lower levels of inherent health, therefore it has its own HPF which is lower
than the others.
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