Answer to Question #176147 in Microeconomics for Fajjar Abbas

Question

Everyone in society should be guaranteed the best health care possible. Discuss its quality and efficiency

Answer 1

Performance involves gaining more profit from limited resources. The equity principle suggests a fair distribution of benefits among all economic agents. The principle of equity is met by guaranteed healthcare policy, but the principle of efficiency is not met. It is explained by the fact that the marginal benefit of maintaining additional healthcare resources (such as skilled medical personnel or modern hospital equipment) is always less than the marginal cost of their creation.