ECON202-1302A-02 Microeconomics Phase 1 - Intro to Economic Thinking

Health economists use demand theory to discuss how the quantity of services is affected by price. Discuss the following: • As prices increase, should health economists advocate giving something up? • As the quantity of health services provided goes up, does the benefit of each additional unit of service become smaller? • Discuss the issue of health care in the context of the following microeconomic concepts: o Marginal analysis o Trade-offs o Opportunity costs • Should this decision be made in a centrally planned economy or a market economy? • Is health care a macroeconomic or microeconomic issue? • How would this affect production efficiency?