As you learned in Week 1, health care spending is growing faster than overall growth in the economy (as measured by GDP) and by 2026 is expected to consume 20 percent of GDP.
For this assignment use the course readings in Week 1 to answer the following questions:
1) Why do we care that health care spending is growing faster than growth in the overall economy as measured by GDP? Support your conclusions with evidence.
2) What are the unique characteristics of health care sector that creates inefficiencies in the market? What kind of inefficiencies? Why?
3) In general, what two metrics would you use to evaluate trade-offs of spending more on health care vs. other non-health care goods? Why?
4) From a government (policymakers) perspective, apply these two metrics to the current excessive health care spending and explain your conclusions.
This report should be at least five double-spaced pages, include a reference page, and cover page. In writing, your report you should rely largely on reference material in the course readings and summary slides in Week 1.