Question

Give a program in America that you feel is thought of as inefficient and describe how...

Give a program in America that you feel is thought of as inefficient and describe how you would create an efficiency model and then convey that to the general public?

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Answer #1

US healthcare spending is allocatively inefficient compared to other countries, marginal benefit from a Dollar spent on healthcare consistently exceeds the opportunity cost of other goods that might be provided. The expenditure could be on improved expenditure on war veterans' insurance, raising teachers' salary. The allocative inefficiency is inevitable as insurance for medical care may cause over-utilization owing to moral hazard. The inefficiency is particularly high in the United States. The reason is a high price of inputs, adoption of extensive medical innovations rapidly, no restrain in incentives for over-utilization.

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