Question

In Grossman’s model of health investment, demand for medical care: ⦁ Increases with education ⦁ Decreases...

In Grossman’s model of health investment, demand for medical care:

⦁ Increases with education

⦁ Decreases with age as health becomes more costly

⦁ Decreases if technology increases

⦁ Increases with demand for health

Homework Answers

Answer #1

The Grossman model of health is a model for studying the demand for health and medical care. In this model, health is a durable capital, it is inherited and decreases over time. Investing in health is a form of medical care purchase and other inputs and depreciation in interpreted as a natural breakdown of health over time.

One of the central predictions of Grossman's investment model is that education increase the efficiency by which individuals utilize inputs to increase health capital and there for increases the demand for health.

So the answer is :

Increase with education

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Using Grossman’s pure investment model of the demand for health, consider the impact of the following...
Using Grossman’s pure investment model of the demand for health, consider the impact of the following on the marginal efficiency of investment (MEI) and related optimal health stock (include a graph in your explanation): Rather than having stopped school with a high school diploma, by age 22 Poppy obtained an undergraduate degree in public health. How would this education decision impact her optimal level of health? Suppose that after age 22 her wage rate stayed the same, what happens to...
Using Grossman’s pure consumption model of the demand for health, consider the impact of the following...
Using Grossman’s pure consumption model of the demand for health, consider the impact of the following on the optimal stock of health, the optimal amount of health inputs to purchase, and the optimal spending on all other goods and services other than on health inputs:             a. An increase in education that only increases productive efficiency (i.e. education only increases the marginal product of health inputs)                       b. Suppose that the increase in education in part a. was simultaneously associated...
3. Using Grossman’s pure consumption model of the demand for health, consider the impact of the...
3. Using Grossman’s pure consumption model of the demand for health, consider the impact of the following on the optimal stock of health, the optimal amount of health inputs to purchase, and the optimal spending on all other goods and services other than on health inputs: a. An increase in education that only increases productive efficiency (i.e. education only increases the marginal product of health inputs) b. Suppose that the increase in education in part a. was simultaneously associated with...
3. Using Grossman’s pure consumption model of the demand for health, consider the impact of the...
3. Using Grossman’s pure consumption model of the demand for health, consider the impact of the following on the optimal stock of health, the optimal amount of health inputs to purchase, and the optimal spending on all other goods and services other than on health inputs: ?a. An increase in education that only increases productive efficiency (i.e. education ?only increases the marginal product of health inputs)? ?b. Suppose that the increase in education in part a was simultaneously associated with...
When capital becomes more productive the marginal benefit of capital decreases and investment demand increases the...
When capital becomes more productive the marginal benefit of capital decreases and investment demand increases the marginal benefit of capital decreases and investment demand decreases the marginal benefit of capital increases and investment demand decreases the marginal benefit of capital increases and investment demand increases If MPC = .75 and housing prices increase to increase consumption by $200 billion, then we would expect aggregate demand to shift to the left by $800 billion aggregate demand to shift to the right  by...
Procedure 2: Health Education health education for aged care old age
Procedure 2: Health Education health education for aged care old age
How does hospice and palliative care differ from the traditional medical model of health care delivery?...
How does hospice and palliative care differ from the traditional medical model of health care delivery? What are the benefits to patients who elect these services in lieu of traditional medical care?
Assume that the medical education industry is constant cost and is in long-run equilibrium. Demand increases,...
Assume that the medical education industry is constant cost and is in long-run equilibrium. Demand increases, but due to strict accreditation standards, new firms are not allowed to enter the market. Analyze the determination of a new long-run equilibrium, showing the effects for a representative school as well as for the market as a whole.
The Marginal Product of Health Care a. Increases as we move down along the Total Product...
The Marginal Product of Health Care a. Increases as we move down along the Total Product Curve for Health Care b. Decreases as we move down along the Total Product Curve for Health Care c. Remains the same as we move down along the Total Product Curve for Health Care d. is equal to the slope of the Total Product Curve for Health Care e. Both b and d are correct
Subject of training or education in health care usually centers on training employees. However, more attention...
Subject of training or education in health care usually centers on training employees. However, more attention is being paid to education that addresses the health care organization's community -- that is, the people it serves. What education outreach programs does your organization have in place? What are the delivery methods and where are they focused? Have they been effective and what more can and should be done?