Question

For Healthcare Briefly discuss why you think it would be more efficient to have more public...

For Healthcare

Briefly discuss why you think it would be more efficient to have more public goods/services in this area.

What trade-offs in private goods and services would you expect to see?

What method of paying for the new public goods you propose do you recommend? Why?

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Answer #1

Public goods are provided by government to public. It is much cheaper than private goods/ services ,so the people who can not able to afford good private healthcare goods or services they can easily afford public goods of services. It can provide social welfare above to earn profit .

Private goods or services are basically made to earn profit .The trade-off in private sector we expect to see are-

  1. Trade off between premium and wages
  2. Tradeoff between cost and efficiency
  3. Trade off created due to higher competitio

The method of paying for the new public goods -

Tax,revenue tax ,income tax

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