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Economics of healthcare
About supply and demand in the healthcare industry
Economics of healthcare
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PRELIMINARY 1.1. Background Seen from an economic perspective, health is a decisive factor high and low quality of human resources. Microeconomic theory of demand (demand) health services states that the price is inversely proportional to the amount of demand for health services. This theory says that if the health service is a normal good, the higher the family income, the greater the demand for the services of health. Conversely, if the type of medical services that are inferiorgood, increasing family income will decrease the demand for the type of health care service (Follandet al., 2001). (LSM Papua Fokker survey results about the health situation in Papua, 2005). HIV and AIDS cases continues to rise, the number of people living with …show more content…
Demand Debate Health Care Services Economics is a science that examines how the individual side of people made a choice. Viewed with or without the use of means of exchange (money) in order to utilize scarce resources in producing a range of goods and services, and distribute it among them for consumption purposes, at present or in the future, among various individuals and community groups ( Samuelson, 1979). From the description of proficiency level, there is one thing that the main problem faced by humans in all fields of harnessing everything or scarcity. That's the main problem, was born two underlying reasons for the presence of economics as the study of human behavior. First, the limited resources for life, society, organizations and individuals. Second, the fact that the needs (needs) and desire (Wants) people and communities can not be fulfilled perfectly. From both these reasons, the selection process should be conducted (Andhika, 2010). 2.3. Debate Theory of Basic Human Needs According to Maslow, there are five levels of needs that were lined up in order of priority from lowest to highest order. These levels into the three levels of basic categories, namely (1) the survival and security, (2) human interaction, love and afilasi, (3) self-actualization (competence, self-expression and understanding) (Andhika:
The 3rd level of Maslow’s hierarchy of needs, is the needs for belonging, love, and affection. Maslow described these needs as less basic than physiological and security needs. Relationships such as friendships, romantic attachments, and families help fulfill this need for companionship and acceptance, involvement in social, community, or religious groups.
Maslow suggested that there are five levels of need. Level one needs are basic needs such as food and shelter which need to be meet before moving to the next level of need. Each level should be meet in turn up to level five, self-actualisation. An example of this in current practice is providing children with snack and water during the school day fulfilling basic needs and providing opportunities to develop friendships and feel safe at school to express their feelings can fulfil needs in levels 2 and 3 of Maslowâ€TMs hierarchy of
Alfred A Knopf, of New York publishing house fame, once stated “An economist is a man who states the obvious in terms of the incomprehensible”. For being someone who is just learning the basics of economics, this elucidation speaks volumes to this branch of the social sciences. From my basic understanding, economics is the study of scare resources that determine the supply, demand, and consumption for a said good. Wherein the simplification of multifaceted issues is used to make predictions that can be used to serve a society’s needs. Although this may seem like a simple concept, Knopf’s comment illustrates the complexity and involvedness of economics within a given society. Ultimately, from this definition, economics is a tool that aims to
There is no denying the fact that the cost of health care in the United States has been on a constant rise than the wage of the employees that pay to have access to better healthcare. There is the general fear among these employees that if the rising cost of the health care is not brought under control, there will come a time, and some analyst think, the time is already here, when those employees will not be able to afford health care for themselves and their families. This fear of the unknown is particularly evident among those closer to retirement. Employers of labor have for quite sometimes now, been shifting the burden of the high cost of affordable health care to their employees, and that has significantly reduced employee standard of living the past couple of years. Similarly, rising health care costs could also drive up inflation and make U.S.-made goods and services less competitive in international markets in the long run because increasing health care costs might eventually be reflected in higher product prices.
6. The special characteristics of the U.S. health care market are Ethical and equity considerations, asymmetric information, spillover benefits, and third-party payments: insurance. Each one of these characteristics affects health care in some way. For example, ethical and equity considerations affect health care in the way that society does not consider unjust for people to be denied to health care access. Society believes that it is the same thing as not owning a car or a computer. Asymmetric information also gives health care a boost in prices. People who buy health care have no information on what procedures and diagnostics are involved, but on the other hand sellers do. This creates an unusual situation in which the doctor (seller) tells the patient(buyer) what services he or she should consume. It seems like the patient has to buy what the doctor tells him. The topic of spillover benefits also cause a rise in prices. This meaning that immunizations for diseases benefit not only the person who buys it but the whole community as well. It reduces the risk of the whole population getting infected. And the last characteristic is third-party insurance. Which involves all the insurance money people have to pay. This causes a distortion which results in excess consumption of health care services.
Psychologist Abraham Maslow created the hierarchy of needs, outlining and suggesting what a person need to reach self-actualization and reveal the true potential of themselves. In the model, Maslow propose that a person has to meet basic needs in order to reach the true potential of themselves. Biological/physiological needs, safety needs, love/belonging need, esteem needs according to Maslow is the fundamental frame for reaching the peak of self. The last need to be met on the scale
Unlike many of his colleagues at the time who were focusing on psychopathology, or what is wrong with individuals, he focused on how individuals are motivated to fulfill their potential and what needs govern their respective behaviors (McLeod)). Maslow developed the hierarchy over time, adjusting from a rigid structure where needs must be met before being able to achieve a higher level, to where the individuals can experience and behave in ways across the hierarchy multiple times daily depending on their needs. The hierarchy is comprised of 5 levels; Physiological, Safety and Security, Love and Belonging, Esteem, and Self-Actualization. The bottom two levels are considered basic needs, or deficiency needs because once the needs are met they cease to be a driving factor, unlike psychological needs. Loving and Belonging and Esteem needs are considered psychological needs, and are different from basic needs because they don’t stem from a lack of something, but rather the desire to grow. Maslow theorizes that individual’s decisions and behavior are determined based on their current level of needs, and the ideal level to achieve full potential culminates in self-actualization; however, operating on this level cannot be achieved until the preceding levels of needs have been
Economics is the study of how best to allocate scarce resources throughout an entire market. Economics affect our lives on a daily basis, whether it is on a business level or a personal level.
The Economy is the backbone to society. There are many factors that operate in, and govern our society’s economical structure. Factors such as scarcity and choice, opportunity cost, marginal analysis, microeconomics, macroeconomics, factors of production, production possibilities, law of increasing opportunity cost, economic systems, circular flow model, money, and economic costs and profits all contribute to what is known as the economy. These properties as well as a few others, work together to influence the economy. Microeconomics and Macroeconomics are two major components. Both of these are broken down into several different components that dictate societal norms and views.
Abraham Maslow wrote the Maslow’s hierarchy of needs theory. This theory was based on fulfilling five basic needs: physiological, safety, social, esteem and self-actualization. Maslow believed that these needs could create internal pressures that could influence the behavior of a person. (Robbins, p.204)
Abraham Maslow did studies of the basic needs of human beings. He put these needs into a hierarchical order. This means that until the need before it has been satisfied, the following need can not be met (Encyclopedia, 2000). For example, if someone is hungry they are not thinking too much about socializing. In the order from lowest to highest the needs are psychological, safety, social, esteem, and self-actualization. The first three are classified as lower order needs and the last two are higher order (Hierarchy, 2000). Without meeting these needs workers are not going to be as productive as they could otherwise. The first three are considered to be essential to all humans at all times. The last two have been argued but are mostly considered to be very important as well.
According to Sloman (2003), many people think that economics is about money. Well, to some extent this is true. Economics has a lot to do with money: with how much money people are paid; how much they spend; what is costs to buy various items; how much money firms earn; how much money there is in total in the economy. But despite the large number of areas in which our lives are concerned with money, economics is more than just the study of money. It is concerned with the production of goods and services and the ...
Economics is basically the understanding of how different economies function. Economics is the study of how to best allocate scarce resources among competing uses. Scarcity in the economy is the main problem. There are not enough resources to keep up with the demand for them. Within the discipline of economics, there are two areas of study: Micro and Macro Economics.
Economics is the study of the production and consumption of goods and the transfer of wealth to produce and obtain those goods. Economics explains how people interact within markets to get what they want or accomplish certain goals. Since economics is a driving force of human interaction, studying it often reveals why people and governments behave in particular ways.
Economics is a social science which deals with the goods and services and their overall life cycle. There is a direct impact that this has on the overall working and the everyday lives of individuals. For instance the overall needs and desires of individuals is covered by the innovation and finance. These are used as a means to effectively provide the needed products and services to the public. Hence it is important to note that economics has a direct impact on the overall lives of individuals and there is a need to understand these in order to be able to run businesses more successfully.