Phase 1 – Intro to Economic Thinking

Phase 1 Intro to stinting Thinking ECON202-1302A-02 Microeconomics Colorado Technical University Joseph Keller 4/14/13 As prices increase, should wellness economists advocate giving something up (opportunity follows/ barter-offs)? I obtain that wellness economists should promote giving something up in as prices rise. The curtilage I feel this way is because as the prices increase a throne of spate would not be able to pay for the bump offs . So in this case I believe that they should consider lowering the prices, this in return should encourage people to continue to receive the services.The tradeoff in all probability 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 set out smaller (marginal psychoanalysis)? If the 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 conception if generating different services will benefit your company (Cliffs Notes, 2013).Discuss the issue of health business organization in the context of the following microeconomic concepts Marginal analysis Marginal analysis in the health direction industry for suit would be if you were spending $1000 for 5 units of health service, sold in $200 increments, marginal analysis would work like this, if you were to buy some other $200 you would get 1/2 units, if you bought another $200 you would gain 1/4more ,another 1/8 . So as you notify observe you could get to a point were buying 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 facility badly needed to add another unit, the trade of could be to lower some of the workers salaries in order to compensate for that unornamented money b eing 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 positive economics Normative economics deals with what the rescue ought to be like or what particular policy actions ought to be suggested to pretend a necessary goal. Positive economics is the part 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 planned economy or a market economy? I theorise that health care in particular should be controlled by a centrally planned economy. These I think will promote a more fairly hie system and decisions basically are made for the greater good. The reason that I feel this way is because if you let the market control the economy wherefore they most likely would do whats best for their selfs instead of what is best for all. If it was a market economy we would probably o verhear the same problem that we have with the gas industry, prices steady rising until it is bitter .People would still need the service but it would be on a must have basis (Hubbard, G & Obrien, T 2013). At least now there are plans in contact to insure 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 look at it from both perspectives, on one hand healthcare is a microeconomic issue because it is the watch of individual firms and their economics .I think the micro part of health care comes into play when youre talking about individual offices and hospitals . Then 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 look at health care and organisation assistance laws etc. How would this affect production efficiency? Healthc are offers a unique subject, because if a person is having a life threatening issue, people will still obtain the services no matter the cost if they can afford it.If the health issue is not that serious then a person may shop around for trying to retrieve the best deal available, or if they dont have medical exam insurance they may choose to forego the procedure needed altogether. References Cliffs Notes. (2013, April 14). scotch analysis. Retrieved from http//www. cliffsnotes. com/study_guide/Economic-Analysis. topicArticleId-9789,articleId- 9726. html Hubbard, G Obrien, T. (2013). Microeconomics. Upper Saddle River, NJ Pearson Education, Inc