Question

Examines the roles of health as an input to and output from a production function and discuss the implications for government public policy.

Answer 1

• The impact of a change in inputs on health depends on an individuals initial location on the health production function.
• Generally, an increase in inputs to health production will have a larger impact on a person with poor health than on a person with great health.
• The health production is constructed by graphing the relationship between health status and health inputs.
• The health production function is generally positive
• A health production function does not provides the same information as a production possibility frontier.

Marginal fixed cost

• NOT increases as the output increases.

• NOT decreases as output increases

A healthcare production function typically includes

• NOT marginal cost of capital and marginal productivity of labor.

• NOT cost of capital and total capital

Policy implementation

process of carrying out public policy through governmental agencies and the courts; can also be done via lawsuits and voluntary compliance

Make policies (or not), regulations, new programs, funding decisions, privatisation (take a service that was owned by the public and turn it into a private service)