1.Markets exist on a spectrum from free market to command economies, with a variety of government roles in between. Think of one good or service in health care. Where does the market for that good or service fall along the spectrum from free market to command economy? What is the role of the government in the market? What is the role of the free market?

2.One doctor could provide all of the care for a patient, but medical care is typically provided by a team of medical professionals. Explain why.

3.Scarcity is a critical aspect of understanding economics. What goods and services are scarce in health care?

4.A family with five members has $10,000 to spend each year. They can spend their budget on either housing ($2,000 for each (additional) room in their housing) or on health insurance ($2,000 for each (additional) household member insured). Draw their budget constraint in terms of housing (rooms) and health insurance (# insured). What is the opportunity cost of one more room? What do you think the family should choose and why?

5.Consider the market for physicians' assistant visits. Describe how diminishing marginal utility would occur in this market.

6.A hospital can produce either open heart surgeries or cancer treatments. Draw the production possibilities frontier for the hospital. Why does it have the shape it does? What does that mean in terms of surgeries and cancer treatments? What point would you pick if you were the CEO of the hospital and why?

7.Hospitals can produce two things: stitches and flu shots. Hospital Claire has a comparative advantage in producing stitches, while hospital Daniela has a comparative advantage in producing flu shots. Draw their production possibilities frontiers and discuss how the hospitals should produce these two goods.

8.Find a news article on a health care intervention (exercising, new surgery or drug, etc.). Write down one normative and one positive claim from the article.