Econonmic Health Terms and History

Economic Terms and Health History

Economic Terms and Health History

Research is focusing on the undergone major changes largely in response to escalating costs is the United States health system, over the past two decades. To a highly interconnected managed care system from an unorganized compilation of physicians and individual clients the health care quickly has evolved. To define evolution, health care economics, and examine its history is the focus of this paper by creating a timeline of health care funding (Investopedia, 2013).  

Health Economics

The utilization, manufacture, and allocation of services and products are the science that studies economics. Concerned with the issues linking to the shortage in the allocation of health care is health economics. To establish the price for a particular service or product health economists use the concept of supply and demand. Affected directly by the relationship between the quantities demanded to the amount available is the price level of the product or service. Normally, if the demand is high the price will be high, and the supply is low, on the contrary, if the supply of the service or product is high, and the price will be low, the demand is low.

An economy uses two types of analysis; the behaviors are explained by economists. Within an

individual hospital the particular aspects of the behavior of organizations and individuals in a

specified economy is examined by microeconomics. The general and broad aspects of an

economy such as national and global trend indicators, the GDP (gross domestic product),

produced by a nation, macroeconomics studies the value of services and products (Rutgers

University Microeconomic Analysis, 2011)

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