Economics of healthcare

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Growth in national health spending closely tracked growth in nominal gross domestic product (GDP) in 2010 and 2011, and health spending as a share of GDP remained stable from 2009 through 2011, at 17.9 percent (Micah et al., 2011).

Based on the above information, answer the following questions:

  • Define the economic principle of opportunity cost.
  • Locate current GDP expenditures and express the percentages in a graph or a chart.
  • Explain whether spending 17.9% of GDP is too much or too little to spend on healthcare.
  • Defend your position using the concept of opportunity cost and highlight specific GDP expenditures that are impacted by healthcare expenditure (opportunity cost).

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