...Economic Tools and Concepts Rakia Rountree HCS/552 October 28, 2013 Chester Brown Economic Tools and Concepts Trillions of dollars are spent on health care related issues in the United States each year which is more than any other industrialized nation; the majority of the expense is related to treating and managing chronic diseases such as various types of cancers. The impact of the declining economy can be attributed to the significant rise in health care cost which has affected work productivity and reduced the quality of health care services (Wiseman, 2011). The paper will discuss the two major economic principles; Marginal analysis and opportunity cost that commonly used to underlie and evaluated the current health system of today. Marginal Analysis Marginal analysis in health care is defined as the examination of additional benefits or costs that arises from additional consumption of goods, in today’s health care industry more money is being spent on health related services because of the increase of supply and demand; to simplify the definition cost rise when the consumption of goods increase, it is the principle of economics that shifts or changes the mix of resources used in health care spending (Mitton & Donaldson, 2004). Marginal analysis in health care is the better option to use when prioritizing services or goods, prioritizing goods based on the total needs will lead to inefficient use of resources. Resource allocations in health organizations are...
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...Economic Concepts and Current Events The Federal Reserve, fiscal policy and comparative advantage are all macroeconomic theories and/or concepts that play a large role in our current economy. The Federal Reserve has a large impact on the banking system and how they create money to have a positive output where the fiscal policy takes a slower rate to get started (Amadeo, 2011) but once executed can be extremely productive. As long as the US has an absolute advantage in some industries and can produce at a lower opportunity cost then they can have a comparative advantage with other countries. The Federal Reserve was created to avoid a possible tragedy spun from a financial panic that could create a major depression. They are here to safeguard the financial system (Williams, 2012) which is exactly what they did in late 2008 when it seemed our economy was starting to fall apart. They were able to provide many bail outs for our financial institutions as well as backstopped the market that corporations use to get short-term funding to finance payrolls and inventories (Williams, 2012). These actions taken by the U.S. Treasury and Federal Reserve have succeeded in halting the financial panic and allowing us to avoid a depression. Although we are still in the midst of a recession, this is not to the fault of the Federal Reserve not doing their job but rather to the damage done by the housing bubble and a large financial crisis. Along with the current recession the government had...
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...Abstract This paper is on the economic concepts of opportunity costs, absolute and comparative advantages as well as the purpose of trades. The paper takes a scenario and using the data, analyzes the opportunity costs each person achieves as well as who has the absolute and comparative advantages between both products of corn and pigs. Also, using research from the book and the internet, I was able to tie in these concepts to international businesses and nations alike, determine the important of these concepts in the economy. Opportunity costs are the true cost of anything that you have to give up (Krugman, 2009). We face decisions with the concept of opportunity costs in mind on a day to day basis; deciding whether to spend money on lunch or save it for another time. The opportunity costs in this situation are to have lunch to eat while giving up savings you can use for later. According to the scenario given between Mary and John which both produces corn and pigs, we can see that for Mary, the opportunity cost for producing corn are ¼ pigs. We came to this deduction by taking the total amount of corn and dividing into 1. Taking the result of this number we multiply by the amount of pigs that’s produced. Mary can produce 200 corns per year or 50 pigs per year if all her resources are allocated respectively to either corn or pigs. Using the formula mentioned, we come up with ((1/200)*50) which results to .25 pigs. To find the opportunity...
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...Economic Tools and Concepts Dana Lawson HCS/552 December 16, 2013 Professor Amy Shoales Economic Tools and Concepts The U.S. health system is set to enter into a new era with the full realization of the individual mandate as part of the Affordable Care Act in 2014. About 34 million people will enter the health care system in early 2014, some with complex medical conditions that require the attention of primary care and specialty physicians (DeNavas-Walt, Proctor, & Smith, 2013). Despite this expected growth, this country is facing a physician shortage due to population growth, aging, and insurance expansion. The short supply has led to increased demand for physician services regardless of specialty or primary practice. According to some estimates, there will be a shortage of 91,500 physicians by 2020 with an increase in this figure to 130,600 by 2025 (AAMC, 2012). The projected shortage is equally distributed among primary care and specialties such as general surgery, cardiology, and oncology. This paper will discuss the physician shortage, describe two economic tools, and evaluate the physician shortage issue using the selected economic tools. Physician Shortage The future supply of physicians will not be able to keep up with demand for health care services. According to the Census Bureau, the population of Americans over 65 years of age will more than double between 2012 and 2060, from 43.1 million to 92.0 million (2012). It is a fact that this segment of the...
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...AP MICROECONOMICS CH 20 QUIZ NAME___________________ _____1. Economic costs can be best defined as a. any contractual obligations that results in a flow of money expenditures to resource suppliers b. any contractual obligation to labor or material suppliers c. payments a firm must make, or income it must pay to resource suppliers to attract those resources from alternative uses, including opportunity costs d. all costs exclusive of payments to fixed factors of production _____2. Normal profit is a. determined by subtracting implicit costs from total revenue b. determined by subtracting explicit costs from total revenue c. the return to the entrepreneur when economic profits are at zero to keep him/her engaged in the business d. the average profitability of an industry over the preceding 10 years –––––3. Economic profits are calculated by subtracting a. explicit costs from total revenue b. implicit costs from total revenue c. implicit costs from normal profits d. explicit and implicit costs from total revenue _____4. Marginal cost a. intersects both AVC and ATC at their minimum points b. is defined as the difference between total cost and total variable costs c. rises for a time, but then begins to decline when the point of diminishing returns is reached d. declines so long as output increases _____5. Economies of scale will allow firms to: a. move upward on the AVC curve and hence reach a lowest cost point ...
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...Assignment: The Key Concepts in Economics Jennifer McDonald Professor Camille Castorina ECO 100 - Principles of Economics February 28th 2016 The Key Concepts in Economics The economic article that I analyzed is “Unemployment rate falls to 5.1 percent, but Americans are not finding pay increases,” from The Washington Post, written by Chico Harlan and Ylan Q. Mui. The key points of this article discuss a possible slight increase in interest rates, the decrease in the unemployment rate, non-management employees’ wages not increasing, and economic uncertainty in China. This possibility of uneven growth in the economy is causing the stock market to become uncertain (Harlan & Mui, 2015). With unemployment and the price of oil being so low the economy should be growing, but with wages not increasing this could be the cause of the uncertainty in the markets. This could also be due to the last financial crisis that economy is still trying to recover from. Job growth and inflation are linked, if more people are employed prices for goods and services go up do to consumption, but even with job growth consumers are not making purchases, this can be due in part to the wage stagnation (Harlan & Mui, 2015). Another factor to the slow rise in inflation, could be a global economic slowdown which could be due in part to a decline in China’s economy; this could cause ripples in other nations’ economies now and in the future. Which could further lower prices of...
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...Assignment 1: The Key Concepts in Economics Markisha Dill William Creamer Principle Of Economics May 31, 2015 Before sitting down to complete this assignment, I thought thoroughly about economics as a whole. My interest was whether economics was considered an exact since, i.e. Mathematics. Economics has been described as a science, numerous times. So in my search to find out whether economics was a science, I looked at an online dictionary to see how these words were defined. First I looked at economics. The definition stated, “Economics is a social science concerned chiefly with description and analysis of the production, distribution and consumption of services and goods. Then I looked for the word “science”. Science was defined as knowledge or a system of knowledge covering general truths or the observation of general laws, especially as obtained and tested through scientific method. Both of these definitions together made me think that economics may just be a science. But then I thought about how science can be mostly fact and how economics involves people, who are extremely unpredictable. So I looked up the word “social”. Social was defined as “relating to human society, the interaction of the individual and the group or the welfare of human beings as members of society. This word better describes economics. And if you look in the definition of economics, you see the word social science. But I do not agree with the idea that economics is a exact science. You...
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...Economic Tools and Concepts Wesley Hill HCS/522 Health Care Economics University of Phoenix Introduction Current health care issues in the United States use economic tools and concepts to understand and explain how to improve quality and minimize cost. Although there are many issues facing health care, one area of focus is a nursing shortage in health care facilities. Three economic tools that will be focused on in this essay are choice and opportunity cost, supply and demand, and marginal analysis. Registered nurses (RN) are the largest group of health care professionals in the United States, strengthening the entire health care delivery system (Caron, 2004). It is important to understand the effects that a nursing shortage has on the economy and the health care system. Choice and Opportunity Cost Choice and opportunity costs are two of the most important concepts in economics. There is never an endless amount of resources, supplies, or even time so choices must be made on a daily basis. The choices that must be made in health care organizations are how to spend their limited income in the best way. The term best can be hard to define when dealing in terms of buying or spending. Health care organizations must consider what choice will give the most satisfaction or maximize gain. Wiseman explains opportunity costs as being, “…any good, including service, is the satisfaction or benefit foregone in not being able to use the resources involved to obtain some...
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...Economic Tool and Concepts HCS/552 Jayme Carrico 2013 Economic Tool and Concepts The health care industry has been experience for many century the shortage of nurses. It is perceive by the health care industry the shortage of nursing supply than the demand across the country. The demand for nurses in every health care organization growth in a daily basic as the technology advance. The consumers are always demanding for more personalize and quality of health care services at the time they are seeking for health care delivery creating nurses supply to be less in every health organization. A few probable reasons for nursing shortage within the health care industry can be the number of nurses in the workforce with a close retiring date, immigrated nurses from other country that works under constrained work permit, and also the population growth. As population increase the requirement for health care providers and services the growth of nursing and medical providers’ shortage will be notable. According to Getzen (2007), “There has recently been a growing recognition that instead of a surplus, a future shortage of physicians may occur. Since the number of U.S. medical graduates has not kept pace with the growth in U.S. population” (Chapter 7, p. 161). The nursing shortage and medical providers has become extremely demanded within the health care industry to provide a quality of health care. The following information will define economic concepts such as supply curve...
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...Economic Tools and Concepts Economic Tools and Concepts The core of economics is known as the law of demand. Every time you pull out your pocketbook to purchase something, the law of demand is at work. The better you understand the law of demand, the better you will understand why you pay different prices for different goods. Demand is the relationship between the quantities of a good or service consumers will purchase and the price charged for that good. The law of demand states that the quantity demanded for a good rises as the price falls, with all other things staying the same. The law of demand also states that if factors remain equal the higher price of goods, creating a lesser demand for the product (Getzen, 2007). Current issues such as health care and the effects on the economy are subjects that could be assessed through economic tools and concepts. The United States of America spends billions on the health care industry. This has proven to cause a negative effect on the United States economy, for example, this has brought about inflation and unemployment and definitely not suitable for economic growth and development. These negative aspects affect sectors of the economy households, corporate markets, and the government, and an essential role in the financing and funding the United States health care system. The local and federal government collects taxes from individuals and corporations to provide funds for the health insurance programs. Corporations offer...
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...Health Economic Tools and Concept Chinenye Nwokey HCS/522 December 2 2013 Amy Shoales Economic Tools and Concept The United States is presently confronting a nursing shortage which is likely to get worse in the future. The shortage is compelled by amount of reasons linked to the employment and maintenance of nurses. Less young females going into nursing schools as professional prospects in other areas have stretched. Countless eligible candidates are denied admission due to a scarcity of nursing instructors at schools. The student will present economic tools and concepts pertaining to health care issues (nursing shortage); the student will use marginal analysis and supply and demand curve to assess the issue of nursing shortage as it relates to health care. These tools are designed to explore and evaluate the nursing shortage. Registered nurses are the major set of health care specialists in America and Worldwide. It is important to understand the effects that a nursing shortage has on the economy and the health care system. Supply and Demand Supply and demand curves are vital when considering the number of registered nurses available to provide services to patients in need of care. A good service is said to be scarce when more is desired than can be satisfied with available resources which means demand exceeds supply. Quantity and quality of care demanded are greater than quantity of nurses supplied (Lane & Grohmann 1995). Nursing is a professional fields...
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...Unit 1 Individual Project Economic Concepts Lamar Dolby ECON220-1204B-04 Faime Moussavi October 7, 2012 Abstract Michelle and James are two people faced with opportunity cost decisions. They both can produce chickens and potatoes or one or the other. They both live in isolated regions but share the same resources. When faced with opportunity costs one has to decide what they have to give up in order to gain something they want. In the scenario Michelle can grow 200 potatoes per year or raise 50 chickens per year. James can grow 80 potatoes per year or raise 40 chickens per year. They both can gain and lose from doing both or choosing one and devoting all their time to that particular area. Opportunity Cost Introduction In today’s society we are faced with many different choices and decisions to make. Should I buy a new car today? Can I afford to purchase a new home? I am sick but I am going to work anyway. These questions and the choices made are all opportunity costs. Opportunity cost does not always have to deal with money or a number (2007). Opportunity cost is the choice you make or the alternative the choice you made. Simply put, “What you would have done if you had not made the decision you did”. We must understand that an opportunity only considers the next best alternative to an action (2007). Scenario; Michelle Michelle’s opportunity cost for producing only potatoes is, she would have to give up producing chickens. She could produce 200lbs. of potatoes...
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...Implications of Health Economics Concepts for health Care Marcus Bright Strayer University Health Economics HSA 510 Dr. Jeff Kaluyu October 27, 2014 Abstract Income Inequality and Rising Health-Care Costs in the United States shows that health costs are the biggest driver of income inequality. This reason has made health care economics to go through multiple renovations leading from money which is the substance of health care economics and that has become vital to economists, policymakers, researchers, and organizational leaders. Today, most employers pay their workers a combination of wages and benefits, the most important of which is health coverage. This too has caused employer’s to hold back on salary increases to keep total compensation costs to cover the high cost of health insurance increases. In health care economics, the gross domestic product (GDP) is of paramount importance and in evaluation of, there is a remarkable rise in the GDP from 5.2% in the 1960’s to 16.2% in 2008, and an anticipation of 19% or more by 2019. It is based on those ongoing increases that this paper will reflect on the concepts that have impacted the world of health care economics in the US. Health Care Professionals and Understanding the Discipline of Health Economics The economics of health care methodologies for funding have continuously been changing since the 1800s. This started with the founding of the American Medical Association in 1847, which promoted scientific...
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...Assignment 1: Implications of Health Economic Concepts for Healthcare Select at least five (5) economic concepts covered in the first four weeks’ readings, and discuss the primary manner in which these concepts impact the world of health care economics. Some examples of selected concepts are health demand and supply, elasticity, resources, health measures, and costs. Write a four to six (4-6) page paper in which you: 1. Assess the value of healthcare professionals and decision makers understanding the discipline of health economics. 2. Defend or critique the importance of considering the complex nature of health and healthcare when examining the economic principles related to healthcare delivery. 3. Analyze the primary potential benefits of learning about health economics related to government involvement in healthcare economics, financing, and delivery. 4. Analyze the main potential benefits of learning about health economics related to private sector government involvement in healthcare economics, financing, and delivery. 5. Use at least five (5) current references. Three of these references must be from current peer-reviewed sources to support and substantiate your comments and perspectives. Your assignment must follow these formatting requirements: · Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with...
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...YUNUSMETOV RUSLAN BEA130004 AZRIANNA ALYSSA AZMIL BEE140005 BBC403: MICROECONOMICS FINAL GROUP ASSINGMENT Question 1 (a) With the help of figure, explain three economics concepts that are represented in the production possibilities frontier. (b) The following events occur in the market for Malaysian Airline System (MAS). I. The crash of MAS flight MH17 in Ukraine. II. The wage rate paid to MAS captain and cabin workers decreases. III. The price of Air Asia tickets increase. IV. People expect the price of MAS economic class tickets to fall next school holidays. With the help of figures, explain the effect of each event on the market equilibrium of MAS service. Answer (a) With the help of figure, explain three economics concepts that are represented in the production possibilities frontier. The Production Possibilities Frontier (PPF) shows the various combinations of goods and services produced within the specified time, given available factors of production and state of technology. It is the boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced. Used to explain basic economic concepts: Scarcity, Choices and Opportunity cost. Scarcity is defined as wants always exceeds limited resources to satisfy them. It’s a problem, which faces not only poor people, as well as rich people in order to fulfill their needs. Choices...
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