MMB725020: Health Economics - Market Failure in the Market for Health - Health Assignment Help

Assignment Task:

Question 1 (Total 25 marks)

I. Briefly discuss the “caring externality”. Why is the caring externality considered to be a type of market failure in the market for health? (150 Words) 4 Marks

II. In a market for health care that does not meet the conditions for market equilibrium it leads to a market for health care insurance. Briefly discuss the concepts of consumer and provider moral hazard in health care insurance. (150 Words) 4 Marks

III. Describe the “Capitation” system to pay doctors and outline the disadvantages of this system? (300 Words) 8 marks

IV. Briefly describe two ways to finance hospitals. (200 words) 5 marks

V. Briefly describe the Bismarck model of funding for health care. (150 words) 4 marks

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