1.Discuss how health can be classified as a "consumption" good as well as an "investment" good according to Grossman?

2. In what sense is the individual considered a "producer" of health in the Grossman model?

3. What is the effect of an increase in education on the demand for health stock according to Grossman?

4. What is the effect of an increase in wages on the demand for health according to Grossman?

5.What is the effect of increasing age on the demand for good health according to Grossman?

6.Using the Grossman model, describe what happens to the demand for good health when the price of health care services increases.

7.Identify three factors that would be expected to increase the marginal productivity of health care in the production of good health.

8.Identify three factors that would be expected to decrease the marginal productivity of health care in the production of good health.

9.Review the data provided below regarding various interventions that may be deployed to reduce infant mortality in the U.S. and comment on which interventions are most to least productive AND most to least cost-effective in terms of reducing in the infant mortality rate:

Intervention

Number of lives saved/1,000 participants

Program cost per 1,000 participants

Cost per life saved (2013)

Family planning services

0.6

$274,000

$455,000

Neonatal intensive care availability

2.8

$30,529,000

$10,713,000

Prenatal care availability

4.5

395,000

$87,000