By Thomas E. Getzen
Now in a brand new version, this textbook is a primer for the commercial research of scientific markets that engages the relevant monetary problems with the health and wellbeing economics and financing box. It presents a complete examine the rules and ideas of overall healthiness economics, in addition to footnotes and references. in addition, this variation bargains a reinforced macro part in addition to extra fabric at the ACA (Health Reform), because it is one of these suitable subject at the present time.
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Additional info for Health Economics and Financing (5th Edition)
The fraction of the health care dollar spent on manufactured goods such as drugs has also fallen as the cost of labor-intensive services has risen. 3 ECONOMIC PRINCIPLES AS CONCEPTUAL TOOLS Tracing the flow of funds through the health care system makes it possible to apply principles of price theory to situations involving life and death, nonprofit organizations, professional licensure, addiction, and other issues. The powerful generalizations and concepts of microeconomics, macroeconomics, finance, and industrial organization allow us to see how medical transactions are like, and yet unlike, most of the rest of the economy.
Cows can get just as many diseases as humans do and we could put all those resources to work saving cows, but we don’t. Cows, I am sure, would set priorities rather differently, but they are not paying the bills. Can We Pay Somebody to Care? Doctors and nurses want to care for patients. Given a chance, they will make extraordinary efforts on your behalf. Medicine is as much about caring as it is about curing. Does paying somebody make them care for you? Probably not. However, not paying people can make it 4 CHAPTER 1 CHOICES: MONEY, MEDICINE, AND HEALTH impossible for them to care for you.
Exchange is based on voluntary agreement, so that trade between a buyer and seller occurs only when both parties believe that they will be made better off by trading (the fundamental theorem of exchange). In the simplest form of trade, consumers buy from businesses, exchanging money for goods and services in a two-party transaction. Consumers make up the demand side of this simple service market, and firms make up the supply side (see Chapter 2). In legal terms, firms are contractual entities that can own, buy, and sell property and pay taxes just as people do.