1. What are some of the factors that explain why health care costs in the U.S. have been growing rapidly over time? Be sure to include as part of your answer why the rate of inflation for medical care exceeds the overall rate of inflation in the U.S. a. Things like income (if we think health care is a normal good than expansion of use), aging population, growth in population; expenditures are price time quantity; all of previous things have affected quantity; inflation, medical prices have risen faster than the overall inflation; second part- quality is not static (not the same quality over time), "inflation" may not be true inflation; higher prices come partly from higher quality; GIVE EXAMPLES; talk about length- a page and a half would be too much (get to the point); try to keep all answers to one page?; be thorough; show that you can understand the points that are made; do not list; tell why those things are part of the list; do not need paragraph for each answer; not a paragraph necessary but not just a list