Phase 1 – Intro to Economic Thinking

mannequin 1 Intro to Economic thinking ECON202-1302A-02 Microeconomics Colorado Technical University Joseph Keller 4/14/13 As prices increase, should wellness economists urge on well-favored virtuallything up (opport building blocky apostrophizes/trade-offs)? I determine that wellness economists should gain ground giving something up in as prices rise. The agent I feel this way is because as the prices increase a lot of flock would non be able to stand for the come off . So in this shell I believe that they should consider lower the prices, this in return should encourage sight to continue to receive the serve.The tradeoff be manage would be lowering the salaries of some of the health providers. As the quantity of health services provided goes up, does the benefit of each additional unit of service become smaller ( b methodicalnessline abbreviation)? If the phone number of services goes up the benefit of each service would become smaller, because using marginal analysis every addition is considered less(prenominal) value. So if you use marginal analysis it will help you figure if generating contrastive services will benefit your telephoner (Cliffs Notes, 2013).Discuss the issue of health sustainment in the context of the following microeconomic concepts borderline analysis Marginal analysis in the health care industry for ideal would be if you were spending $1000 for 5 units of health service, sold in $cc increments, marginal analysis would work same(p) this, if you were to buy other $ two hundred you would bring forth 1/2 units, if you bought another $200 you would gain 1/4more ,another 1/8 . So as you nates gull you could get to a point were purchase more units would work negatively because you would no longer be gaining anything (Cliffs Notes, 2013). Trade-offs /Opportunity costsTrade-off in the industry would be if a installment badly needed to add another unit, the trade of could be to lower some of the workers salaries i n order to compensate for that discussion sectionicular proposition(a) money being spent. The opportunity cost is the money lost from the employees in order to get the extra unit needed. (Hubbard, G & Obrien, and T 2013). Normative versus substantiating economics Normative economics deals with what the saving ought to be like or what go againsticular policy actions ought to be suggested to attain a necessary goal. Positive economics is the go away of economics that concentrates on realities and cause-and-effect relationships. Hubbard, G & Obrien, and T 2013). . Should this decision be do in a centrally think economy or a mart economy? I think that health care in particular should be ascendancyled by a centrally intend economy. These I think will promote a more fairly run system and decisions basically are make for the greater good. The reason that I feel this way is because if you let the market control the economy then they most presumable would do whats best for their selfs instead of what is best for all. If it was a market economy we would probably induce the same problem that we clear with the bollocks industry, prices steady rising until it is unbearable .People would calm need the service but it would be on a must beat basis (Hubbard, G & Obrien, T 2013). At least now at that place are plans in affect to plow that everyone has affordable health insurance, along with things like Medicaid and Medicare. Is health care a macroeconomic or microeconomic issue? I think that healthcare is both because you have to nerve at it from both perspectives, on one hand healthcare is a microeconomic issue because it is the study of undivided firms and their economics .I think the micro part of health care comes into play when youre talking about individual offices and hospitals . consequently it can be viewed as macroeconomics when you look at health care in the bigger sense, meaning health care as a whole. The macro part comes into play when you lo ok at health care and government assistance laws and so on How would this affect production efficiency? healthcare offers a unique subject, because if a someone is having a life threatening issue, plurality will still obtain the services no matter the cost if they can afford it.If the health issue is not that serious then a psyche may shop around for seek to find the best deal available, or if they dont have medical insurance they may choose to relinquish the procedure needed altogether. References Cliffs Notes. (2013, April 14). Economic analysis. Retrieved from http//www. cliffsnotes. com/study_guide/Economic-Analysis. topicArticleId-9789,articleId- 9726. hypertext markup language Hubbard, G Obrien, T. (2013). Microeconomics. Upper appoint River, NJ Pearson Education, Inc