Info
Warning
Danger

Occupational Health and Safety, Canadian Edition

15th Edition
by David L. Goetsch, University of West Florida and Oskaloosa-Walton Eugene Ozon, Algonquin College
1035 Solutions 49 Chapters 1478 Studied ISBN: 0133450244 Computer Science 5 (1)

Chapters 22: DQ 10

10. Using the concepts in Chapter 7’s discussion of consumer behavior, explain how health care insurance results in an over allocation of resources to the health care industry. Use a demand and supply diagram to specify the resulting efficiency loss.


Step-By-Step Solution

10. Using the concepts in Chapter 7’s discussion of consumer behavior, explain how health care insurance results in an over allocation of resources to the health care industry. Use a demand and supply diagram to specify the resulting efficiency loss.

Answer: Health care insurance removes or greatly lessens a person’s budget constraint at the time health care is purchased, raising health care utility per dollar spent and causing an overconsumption of health care. In Figure 22.3b, insurance reduces the price of health care at the time of purchase from Pa to Pc, increasing the quantity consumed from Qa to Qc. At Qc the marginal cost of health care is represented by point b and exceeds the marginal benefit represented by c, indicating an over allocation of resources. The efficiency loss is area cab.


Unlimited Access

More than 10 Million Textbook Solutions, Q&A's, Flash Cards, Study Documents and much more for just
USD 3.95
Total: USD 3.95
*Please Enter the Email to Proceed
No obligation. Choose plans to save more.
Continue to Paypal
You will be charged USD 119.76 upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. Learn more about our subscriptions.

FAQ's

Gingerbread cookie pastry halvah
Gingerbread cookie pastry halvah macaroon icing sugar plum. Tootsie roll cake chocolate. Gingerbread sugar plum chupa chups powder jelly-o oat cake cake chocolate bar. Cookie brownie chocolate. Brownie pastry bonbon lollipop sweet. Icing carrot cake sweet roll biscuit. Ice cream dragée powder.
Pastry gummies donut pastry
Gingerbread cookie pastry halvah macaroon icing sugar plum. Tootsie roll cake chocolate. Gingerbread sugar plum chupa chups powder jelly-o oat cake cake chocolate bar. Cookie brownie chocolate. Brownie pastry bonbon lollipop sweet. Icing carrot cake sweet roll biscuit. Ice cream dragée powder.
Cake gummi bears cheesecake
Gingerbread cookie pastry halvah macaroon icing sugar plum. Tootsie roll cake chocolate. Gingerbread sugar plum chupa chups powder jelly-o oat cake cake chocolate bar. Cookie brownie chocolate. Brownie pastry bonbon lollipop sweet. Icing carrot cake sweet roll biscuit. Ice cream dragée powder.
Brownie jelly-o pastry topping
Gingerbread cookie pastry halvah macaroon icing sugar plum. Tootsie roll cake chocolate. Gingerbread sugar plum chupa chups powder jelly-o oat cake cake chocolate bar. Cookie brownie chocolate. Brownie pastry bonbon lollipop sweet. Icing carrot cake sweet roll biscuit. Ice cream dragée powder.
Tootsie roll cake chocolate
Gingerbread cookie pastry halvah macaroon icing sugar plum. Tootsie roll cake chocolate. Gingerbread sugar plum chupa chups powder jelly-o oat cake cake chocolate bar. Cookie brownie chocolate. Brownie pastry bonbon lollipop sweet. Icing carrot cake sweet roll biscuit. Ice cream dragée powder.