essay question: “Health care is an economic good.”
Explain what is meant by this statement and critically discuss it. Using the concept of opportunity cost, examine the implications of the statement for decisions about health and health care. Give
examples to illustrate your answer.
Sample Solution
The concept of “opportunity cost”, broadly defined, states that when we make decisions about how to use our limited resources (time and money, for example), the opportunity cost is what we miss out on by not using those same resources in a different way. When it comes to making decisions about our health and health care, this can be particularly relevant as it allows us to consider both the direct costs associated with a given decision as well as any potential lost opportunities when deciding whether or not to pursue certain treatments or preventive measures.
Sample Solution
The concept of “opportunity cost”, broadly defined, states that when we make decisions about how to use our limited resources (time and money, for example), the opportunity cost is what we miss out on by not using those same resources in a different way. When it comes to making decisions about our health and health care, this can be particularly relevant as it allows us to consider both the direct costs associated with a given decision as well as any potential lost opportunities when deciding whether or not to pursue certain treatments or preventive measures.
For instance, if an individual has $10 and must decide whether they should spend that money on going out for dinner or ordering a prescription medication they need to treat their health condition, the opportunity cost would refer not just to the direct monetary costs; rather it would also include any other benefits they could have received from either option such as enjoyment of eating at a particular restaurant or improved quality of life due to taking their medication. This approach allows people more insight into which choice may provide them with bigger gains overall.
On a larger scale, governments must also consider opportunity costs when constructing public policy related healthcare – while allocating funds towards developing new medications might seem like an effective use resources , sacrificing other investments such infrastructure development transportation improvements could ultimately lead greater burden patients receiving treatment . Similarly , implementing regulations limit access certain treatments doctor discretion order cut down medical expenses may deny citizens life-saving options unavailable through cheaper alternatives .
In conclusion , by understanding concept “opportunity cost” better informed decisions can made related healthcare ; rather simply looking at immediate costs associated various policies actions one takes , true value each option explored taking into account other possible outcomes resulting from different spending allocations . By utilizing this framework more comprehensive look can taken preventative care strategies prescriptions treatments used ensure optimal benefit entire population while minimizing waste scarce resources available across populations .
