Read and understand carefully the following

important scenarios. Answer the questions in relation to the topic that was discussed to you and based

from economics perspective.

Scenario 1

The year 2020 made its mark in history. As the COVID-19 (the

novel coronavirus) spread across the globe like a

veldfire, health care systems suddenly sagged under pressure

- even in advanced economies. Like never before, since the

end of World War II, Intensive Care Units (ICUs) were critically

hit by shortages of equipment and space for novel COVID-19

patients. "Ventilators" became the buzzword since these are the

critical life-saving pieces of equipment that helped those in

critical distress to continue breathing and remain alive. At a time

when factories were full with bristling new automobiles ready for

the market and liquor stores overstocked with alcoholic

beverages (among many other examples), an important

development economics question that arose is why the market

(even in developed economies) did not provide sufficient

supply of healthcare? The answer can be partly explained by

the fact that healthcare is a public good that is typically undersupplied as discussed in the course. Many developing

challenges such as air pollution, low rates of school enrolment

(particularly in developing countries) are partly because clean

air, education etc. are public goods.

Question:

Why the market

(even in developed economies) did not provide sufficient

supply of healthcare?

Scenario 2

In 2020, as the advanced healthcare systems in high

and upper-middle income countries in the global north

struggled to cope with COVID-19 induced high morbidity

and mortality rates , every epidemiologist, health

economist and policy maker shuddered to think about

the potential outcomes once the disease finally made a

firm foothold in the weaker health systems and less

prosperous economies in the global South. Some

anecdotal evidence suggested at the time that some

countries in the global South only had a handful of

working "ventilators" .This introduces another

development question:- "Is it that low income

countries cannot afford to improve their health care

systems at all?" "Can governments not show some

level of effort?" "Or is that government priorities are

oftentimes misaligned?"

Question:

Is it that low income

countries cannot afford to improve their health care

systems at all?" "Can governments not show some

level of effort?" "Or is that government priorities are

oftentimes misaligned?