Please answer these questions in numeral order: (please have an understanding of the book 'when breath becomes air' by Dr. Paul Kalanithi).

1. In the lecture on the demand for health care services, the "need" for and the "demand" for health care services were each defined to include three parts.

(a) Use the three parts of the definition of "need" to describe patient Kalanithi's need for health care services in the novel 'when breath becomes air'.

(b) Use the three parts of the definition of "demand" to describe patient Kalanithi's demand for health care services.

2. Many factors influence the demand for health care services.

(a) Using the factors that influence the demand for health care services, explain what happened to patient Kalanithi's demand for health care services after he was diagnosed with inoperable lung cancer.

(b) Using the factors that influence the demand for health care services, explain why Patient Kalanithi's demand for health care services may be different from other patients with the same diagnosis.

3. Health insurance is a unique feature of the health care market.

(a) Why do people buy health insurance?

(b) Would you choose to be in an insurance pool with Patient Kalanithi or other people with chronic, expensive medical problems? Explain using economic concepts.

(c) What characteristics would you prefer for the insurance pool associated with your health insurance policy? Explain

4. Incentives within traditional health insurance (THI) plans encourage health care spending, while incentives within managed care (MC) plans constrain health care spending.

(a) How do the different ways THI and MC pay physicians affect allocative efficiency? Explain.

(b) Use the concept of moral hazard to explain why consumers covered by MC compared to THI use LESS health care services.Explain.

5. Pharmaceutical companies often engage in price discrimination.

(a) Explain what price discrimination is in pharmaceutical markets?

(b) Explain the four factors required before a company can engage in price discrimination?

(c)Explain why pharmaceutical companies engage in price discrimination?

6. Use the concepts of direct-to-consumer advertising and detailing to explain why the demand for pharmaceutical drugs may result in a market failure.

7. Explain two types of technological change that contribute to the growing share of GDP on health care goods andservices.

8. Explain the difference between community rating and experience rating.

9. Explain why Medicare is considered a LESS target efficient direct in-kind subsidy than Medicaid.

10. What are the three types of benefits included in a societal cost-effectiveness analysis? Give an example of each type of benefit as it applies to the inoperable lung cancer.