Applying Economic Principles and Tools to a Health Care Issue

In this assignment you apply economic principles and tools (cost, demand, and market demand curves) to the economic issue that you chose in the Week 2 activity. You are also asked to complete a brief description of health care financing payment models.

Instructions

Consider the health care issue that you identified in the Week 2 activity and address each of the following in a 3–4 page Word document:

1. Explain how economic principles can be applied to this issue to effectively guide decision making.
2. Demonstrate how supply and demand curves are used to accurately assess the issue.
3. Analyze how the cost curve can be used to assess the issue. Provide an example.
4. Compare capitation, fee for service, and pay for performance financing payment models to accurately reveal their similarities and differences.