Review Notes - Introduction

- why is the study of the health system interesting/important?

- what is personal health care expenditures?

- why has it risen in the past 50 years?

- changes in the delivery of health care.

- Fee-for-service medicine, HMOs, PPOs

- what are these?

- how has delivery changed?

- incentives?

- why economics? how does it help our understanding of the health system?

- positive versus normative

- scarcity

- production possibility model

- implications of the analysis

- allocative efficiency and inefficiency

- MSB and MSC (what are those?)

- efficiency occurs where?

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