Tuesday, 20 October 2009

Homework: economic system



So, the main thing what i'll be talking about is healthcare around the world and economic system.
United States - Private system.
"Private sector funded, with more than half from private sources. Private health insurance available through employer, government or private schemes.15.3% of population (45.7 million people) do not have health insurance.Also federal government is divided by two parts:
1)Medicaid - joint funded federal-state programme for certain low income and needy groups - eg children, disabled.
2)Medicare - for people 65 years old and above and some younger disabled people and those with permanent kidney failure undergoing dialysis or transplant.
Most doctors are in private practice and paid through combination of charges, discounted fees paid by private health plans, public programmes, and direct patient fees.

UK - Universal, tax-funded system.
Public sector funded by taxation and some national insurance contributions.About 11% have private health insurance. Private GP services very small. Healthcare is free of charge in point of delivery and prescription drugs (except in Wales).Exemptions include children, elderly, and unemployed. About 85% of prescriptions are exempt.

France - Social insurance system.
All legal residents covered by public health insurance funded by compulsory social health insurance contributions from employers and employees with no option to opt out.Patients pay doctor's bills and are reimbursed by sickness insurance funds.Government regulates contribution rates paid to sickness funds, sets global budgets and salaries for public hospitals. Doctors in public hospitals are salaried whilst those in private hospitals are paid on a fee-for-service basis. Most out-patient care is delivered by doctors, dentists and medical auxiliaries working in their own practices.

Singapore - Dual system.
Dual system funded by private and public sectors. Public sector provides 80% of hospital care 20% primary care. Financed by combination of taxes, employee medical benefits, compulsory savings.Patients expected to pay part of their medical expenses and to pay more for higher level of service. Government subsidises basic healthcare.Public sector health services cater for lower income groups who cannot afford private sector charges.

c. explain how the idea of economic systems can be used to explain how the various countries allocate their scarce resources to answer the 3 basic economic questions any society has to answer .
So,there is 3 types of economic systems:
1) market economic system( scarce resources allocated by force of supply and demand)
2) command economic system(scarce resources allocated by government)
3) mixed economic system(scarce resources allocated by government and market)

Also there is 3 basic questions:
1) What to produce
2) how to produce
3) whom to produce

Imagine country A and the country B. In the first country command economy ant in the other is market economy.The first one allocates scarce resources with help of the government,so it is deciding what to produce, how to produce and to whom. And in the other country that all process controls market( supply and demand).
ermmm....I think that's all...) finally finished.))

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