How does the text relate to the three key questions that are at the heart of the 'economic problem'?
What goods and services to provide?
How best to produce the goods/services the best way?
Who is to receive these services?
The NHS provides these services in the United Kingdom. The NHS receives money from the government through taxes, and they decide what they are going to use that money on such as doctors, medical research or even equipment. The money at this very moment has not been utilised in the best way possible yet, therefore the government are trying to solve this situation and come up with some solutions to overcome the problems that were stated in the extract. The NHS is free to the public and so everyone is entitled to these services.
What are the opportunity costs involved in deciding on appropriate levels of health care?
The Opportunity cost of helping improve the NHS has been made from raising the taxes and through National insurance. However this means that as we spend more time improving the NHS we spend less time on improving education about common diseases that many people get as they are uneducated. The money could also be used to research into ways of treating diseases. This will also mean that more people would not be happy as if they are a healthy human being they may think that they are wasting their money on something that they do not need they would however find building a sports facility to stay fit more useful. A lot of the money has also been used up on increasing the wages of doctors and nurses, however it is also very beneficial as it could land more educated people jobs.
How does the text suggest that there may be alternative answers to the issue of the provision of health in the UK?
There are three main points that the text raises to solve the issue of the provision of health in the UK. It suggests the government the raise taxes through national insurance and so, so that the money collected from it can be used to improve the health services. Another way is to use the same health system as the Americans. This is where the person can choose to cover him self with health insurance so if he does have an unexpected he will automatically be covered. However there is also a downside to this system as not everyone takes this insurance policy and faces a huge debt if they do have an . The government could also use a Social Insurance fund which would make the workers split some of the money from their salary.
In question 2 when you get an economics term like 'opportunity cost' it is good practise to always define that term. It will usually get you a mark and is good habit to get into as it gives your the basis from which to form your analysis. You list lots of things that would be forgone but could relate them more closely to the factors of production. Remember you are economist now and must be precise.
Good use of source material throughout ensures you will get application marks.