Economics

Governors State University Department of Health Administration & Informatics

HLAD 4104 Health Care Economics

Problem Set 1

(Total: 20 Points)

1. Please explain the three major tasks of economics, what are they, and provide an example for each of the tasks. (6 points)

2. The following table shows data for Australia, the United Kingdom and the United States. (5 points) a. Please compare and contrast the life expectancy at birth change from 2010 to 2015 in

Australia, United Kingdom and United States? b. Please compare and contrast the expenditure per person change from 2010 to 2015 in

Australia, United Kingdom and United States? c. What did you observe regarding the relationship between life expectancy and

expenditure per person from the three countries? What conclusions do you draw from your observation?

Life Expectancy (Years) Expenditure per Person 2010 2015 2010 2015

Australia 81.8 82.5 $3,893 $4,493 United Kingdom 80.6 81.0 $3,281 $4,125

United States 78.6 78.8 $8,559 $9,507 Source: Data from OECD (2017). Note: Expenditure per person has been translated into US dollars and adjusted for inflation.

3. The graph below contains four lines, E, F, G, and H, explaining different relations between price and quantity of visits. Which line(s) indicates a positive relationship between price and quantity of visits, and explain why? Which line(s) indicates a negative relationship between price and quantity of visits, and explain why? What is the slope for line E, F, G, and H, respectively? (5 points)

4. Please indicate at which point flat-of- the-curve medicine is experienced in the following example, assuming that influenza shots have been administered for a given population of elderly persons. (4 points)

Number of Influenza shots Administered

Number of Hospitalizations for

Influenza 0 6000

100 5500 250 4800 300 3200 450 2000 550 1800 600 1800