Health Economics

Assignment

2020 has been the year of coronavirus and the year public health came to the forefront of Government policy. One key reason for the high level of Government intervention has been the presence of externalities.

a.What is an externality? How externalities can have positive or negative impacts on individuals in a community?

b.How do positive and negative externalities effect the consumption of health and healthcare? What about the production of health and healthcare? Illustrate with examples from the coronavirus pandemic.

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c.Using the above examples, propose some solutions that policy makers can use to ensure that consumption and production of health and healthcare is efficient in the face of externalities. How do these solutions address the economic theories described above.

 
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