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Unformatted text preview: ECONOMICS STANDARD LEVEL PAPER 2 Friday 21 May 2004 (morning) 2 hours M04/330/S(2)+ c IB DIPLOMA PROGRAMME PROGRAMME DU DIPL&ME DU BI PROGRAMA DEL DIPLOMA DEL BI 224-044 6 pages INSTRUCTIONS TO CANDIDATES ! Do not open this examination paper until instructed to do so. ! Section A: answer one question. ! Section B: answer one question. ! Use diagrams and real-world examples where appropriate. SECTION A Answer one question from this section. Either Question 1 Study the items below and answer all the parts of the question that follow. THE HEALTH CARE DEBATE Item 1 THE CASE FOR GOVERNMENT PROVISION " Government provision of health care, free to the user at the point of consumption, is based on the principle that everyone, irrespective of means or age, should benefit from the medical services available, so that human need rather than effective demand determines who gets what . This is fairer than market provision and the charging of prices. # Government provision may also be justified on efficiency grounds as market provision is likely to lead to a misallocation of resources. There may be external as well as private benefits when an individual consumes health care and becomes healthier. With individuals acting on the basis of their private benefits, the social benefits will not be fully achieved unless the government intervenes in some way. Item 2 THE CASE FOR MARKET PROVISION " The demand for health care appears to rise constantly from year to year. This rise can largely be attributed to demographic changes in the population and rising living standards. Most governments spend more in real terms each year, but demand persistently outstrips the supply of services available; and costs in the health care sector...
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This note was uploaded on 09/30/2011 for the course CHEM 102 taught by Professor Tina during the Spring '11 term at Global.
- Spring '11