Unit 2- Economics Principle

Question 1

Why care about economics?

Answer 1

Nearly involved in all issues facing health care

Question 2

What is demand?

Answer 2

How much something is wanted, influenced by limited resources

Question 3

What demand curve represents the healthcare system?

Answer 3

change in demand, graph shifts left and right

Question 4

What factors lead to a change in demand?

Answer 4

prices of related goods, income, number of consumers, attitudes, tastes and preferances, consumer expectation if future prices

Question 5

What factors impact elasticity?

Answer 5

availibility of substitutes(more subs=more elastic), price relative to income, necessity v. luxury, short v. long run

Question 6

change in quantity demanded

Answer 6

assumc price changes, price v. quantity

Question 7

change in demand

Answer 7

assume price is held constant

Question 8

elasticity of demand

Answer 8

assume price changes, willingness to pay

Question 9

What is supply?

Answer 9

how much of a pproduct is available from supplier perspective, independent of demand

Question 10

What leads to a chane in supply?

Answer 10

techniques of production, number of sellers, resource costs, price of related goods, seller expectations

Question 11

Why is helthcare different from other industries?

Answer 11

number of buyers and sellers, entry and exit, variation in products, full and free information, inelastic, universal demand, unpredictability

Question 12

Monopolistic competition

Answer 12

relies on product differentiation

Question 13

monopoly

Answer 13

one seller(brand names)

Question 14

oligopoly

Answer 14

multiple sellers of similiar products

Question 15

monopsony

Answer 15

one buyer(gov purchasing healthcare)

Question 16

Oligospony

Answer 16

many sellers, few buyers

Question 17

How can economic preformance be improved?

Answer 17

patients awae of prices and costs, provider feedback, reimbursment incentives, balance cost and value