(Please answer in numeral order)

1. Over the past sixty years, health care spending as a percentage of GDP has increased from 5% in 1960 to 19.7% in 2020. Explain this growth in health care expenditures using two of the explanations from the:

(a) Feldstein reading on the rise in medical expenditures, and the Willard Gaylin article entitled Faulty Diagnosis.

2. The U.S. spends nearly twice as much on health care per capita than other developed countries. Many critics use this comparison to argue that the U.S. spends too much on health care. Use the economic concepts developed to explain why this conclusion may be inaccurate.

3. Use the data below to calculate the following statistics for the U.S. in 2022 (show all your calculations):

(a) National health expenditures

(b) Hospital expenditures per capita

(c) Personal health care expenditures as a percent of GDP

Type of Expenditures in Billions Personal Health Professional All Other Non Program Investment in Care Services hospital, Non Administration & Research and professional Net Insurance Cost Construction Services & Goods Amount in $3,720 $1,201 $1,084 $553 $224 Billions Per capita investment in research and construction: $677 Per capita Gross Domestic Product (GDP): $74,51 l