1. In every country, government is involved in healthcare with varying degrees. Reasons for the role government in healthcare range from ethical and moral values to economic reasoning. In two hundred words or less, explain economic reasons for the government role in healthcare.
2. Market power of a firm increases with less competition. Consumers on the other hand lose as the industry becomes dominated by sellers with increasing market power. In two hundred words or less, explain how consumers lose when market power of sellers increase.
3. Draw two demand curves, one for consumers who are buying in a competitive seller market and one for consumers who are buying in non-competitive seller market. In hundred words or less, explain why the two curves are different.
4. Draw a market model for medical care. On the graph show the impact of the following:
a. Aging Population
b. Loss of jobs and wealth of citizens due to economic decline
c. High cost of medical inputs such as physician wages, hospital charges, pharmaceutical production mishaps etc.
d. Widespread availability of private and government medical insurance.
5. Draw a graph for medical care market. On the graph show the impact of:
a. Introducing a medical transcribing software to physician staff that is not working properly
b. Changes in tort law that is less favorable to the medical providers
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