define health economics and discuss some of the concepts that guide economic thought. Discuss the magnitude of the financing problem in medical care. What are the major reasons that medical spending is absorbing an increasing share of national output? How important is cost containment in establishing a national health care policy? In addition to controlling costs, what are the alternative goals for a national medical care system? Discuss the changes in medical care delivery that have happened over the past 30 years and provide insight into the impact these changes have had on costs. How does the evaluation of marginal benefits and marginal costs identify economic optimization? What is the proper role of economics in the study of health and medical care? What does economics have to offer? What are its limitations? What are the four characteristics of the model of perfect competition? How does the perfectly competitive marketplace influence healthcare firm behavior