1.The following factors (and several others) affect the supply of medical care: A. The price of medical care, B. The prices of inputs, and C. Technological or scientific knowledge. Explain how an increase in each of the above, while the effect of the other two is held constant, will cause changes in supply curve of medical care.
2. Economists claim that there have been and/are several causes of economic inefficiency in medical care. List three basic causes, and for each describe why it results in economic inefficiency and poor performance in medical markets.
3. How has the lack of information affected the structure of the medical care market?. Explain.
4.Contrast the differences in technical versus economic efficiency with respect to the provision of medical services. A new generation of a medical equipment is 20 percent more efficient than the previous models but it is forty percent more expensive. Should it be adopted?. Explain.
5. What information does a decision-maker need to minimize their costs of production?
6. Would a decision-maker use an input if it is subject to diminishing returns?. Explain.
7. Assuming a price competitive medical market, what is the likely effect on the relative proportion of Nurse Practitioners vs. physician services used in providing a treatment if a large increase occurred in the supply of physicians?
8. How has the elasticity of supply of medical services affected the government’s cost of expanding health care to the poor and uninsured.