-Government Intervention in Healthcare- Name: University: “In absence of govt. intervention, market resources allocated to health tend to be below the socially optimum level” Most of the developed countries see the biggest chunk of their government’s expenditure go to three major sectors; defense, healthcare and education…
Let us write or edit the essay on your topic
"Intermediate Micro economics. In absence of govt. intervention, market resources allocated to health tend to be below the social"
with a personal 20% discount.
Download file to see previous pages...
However, this is only the case when a government is in question. There are several debates regarding the issue of giving healthcare in the hands of private sectors, but there is a speculation regarding the treatment of healthcare as that of a business with a sole purpose of achieving profits. On the other hand it is also said that in order to maintain a market share in healthcare, the private sector players will strive to provide the best type of technology, which would be more convenient and advanced, and heavy on the people’s pockets. A study of the importance of the role that a government intervention plays in the healthcare also brings to light the adverse effects of its absence. The concept of a socialist system of government believes that it is the government’s job to provide all basic facilities to the people in general with no disparities between income classes and backgrounds as long as they are all citizens of the same society. Basic necessities like education and healthcare should be provided to all, unlike the competitive markets for other consumer commodities. Multi-tier system offers different levels of quality but a single tier system is the true essence of a democratic socialist system where all people are equal when it comes to basic rights. The government provide healthcare through subsidies that are derived from the pool of general taxation. Where socialism is flexible in terms of existence of private entities too, it is often mistaken for a democratic system. The Healthcare system in the US has been center of much controversy for the past few years. This is because of the high costs of healthcare as a result of the influx of an array of private medical institutions and lack of government regulations to hamper their excessive profiteering. This has resulted in the emergence of insurance based healthcare, usually backed by employers as it is not affordable by the general public (Cfeps.org, 2013). The current government has offered incentives for a better system in place with maximum government intervention to ensure that the masses are provided with adequate healthcare reasonably. Healthcare is a major concern for the people all over and history proves that it is imperative for the government to have a regulatory body in place to ensure people’s satisfaction over this dire need of theirs. Private and publicly funded healthcare systems running in some countries in the world have been a point of controversy. This is because one side holds the notion that provision of healthcare should be government funded and be provided as a free service to the people from the government revenues. Whereas, public funded healthcare which is provided free, drawing from the pool of health tax imposed on the general public, has been seen as an effective system as well (Saltman & Busse et al., 2004). This is where the economic externalities come into play as well since not all the people are availing expensive healthcare facilities, and some of them who are, are those who have not paid fully for it, resulting in the negative externality for the former and a positive one for the latter. Government intervention in the private markets in the form of imposing regulations and restrictions have been viewed as a hindrance because this tends to de-incentivize the induction of new and more technologically advanced health based companies in the system (Lewis, 2000).
...Download file to see next pagesRead More
Cite this document
(“Intermediate Micro economics. In absence of govt. intervention, market Essay”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1498379-intermediate-micro-economics-in-absence-of-govt
(Intermediate Micro Economics. In Absence of Govt. Intervention, Market Essay)
“Intermediate Micro Economics. In Absence of Govt. Intervention, Market Essay”, n.d. https://studentshare.org/macro-microeconomics/1498379-intermediate-micro-economics-in-absence-of-govt.
The demand curve plots the combination of both the quantity and the price of a commodity. A slight shift in the price, results in a shift along the demand curve price. A slight change in the price would certainly result to a shift of the demand curve. Technically speaking, a shift along the demand curve can be termed as a shift in the quantity demanded.
Since to sell more units of its product the firm has to lower its prices, the firm faces a downward sloping demand curve (Ison & Stuart, 2006). Since each additional unit sells only at a lower price, the marginal revenue curve lies below the average revenue curve or the demand curve.
There are abundant signs which are pointing towards positive glimpses because there has been a little growth in the overall income of UK and the statistics are revealing that double dip depression is now being diminished from the UK’s economy(Alderman & Shelburne, 2011).
vaccinations against infectious diseases). Briefly suggest how government might intervene to correct this under-provision? 5 (C) The Consumer Price Index (CPI) is the official measure of inflation in the United Kingdom. Why might CPI not be an accurate measure of the costs of living for any given individual consumer?
Therefore the author has termed Google as being operating as a monopoly in the search market. The author refers that Google has been dominantly playing its role in the search market and is this dominance is favored by governments as they are not placing any restrictions on the practices adopted by Google.
Because of the price floor, buyers will only be willing to buy at QA, even if the suppliers are willing to sell at QB. This leads to an inefficient allocation of resources, and will later on force the government to be the last option buyer of the surplus goods, in the event that the market is unwilling to purchase the surplus.
Short run equilibrium of a firm can be derived based on the total revenue and total cost and marginal revenue and marginal cost and marginal revenue and marginal cost. As firms are price-takers, each firm in an industry tries to maximize its profit by adjusting the output to a level where Marginal Cost (MC) =Marginal Revenue (MR).
The economic approach to consumer behavior delves into consumer demand analysis. The Theory of consumer demand is the analysis of demand with regard to consumer behavior and rationale when changes occur in variable factors such as price, income and
without making anybody else worse off.” From this rationale economists have deduced the conceptions of Pareto improvement and Pareto optimality which is otherwise know as Pareto efficiency. A condition is believed Pareto-optimal if it is not possible to make additional
s poor supply or low demand the biggest cause for concern in the contemporary housing market?” In answering the question, he points out that a part of the problem is due to the lack of enough buyers for homes in the US. This, he notes, is evident from the extremely low
1 Pages(250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Intermediate Micro economics. In absence of govt. intervention, market resources allocated to health tend to be below the social for FREE!