U.S. health care spending grew 3.6 percent in 2013, reaching $2.9 trillion or $9,255 per person. As a share of the nation's Gross Domestic Product, health spending accounted for 17.4 percent.
Using the above information and other information you will be directed to below, do the following:
Define the economic principle of opportunity cost.
Locate current GDP expenditures and express the percentages in a graph or a chart.
Explain whether spending 17.4% of GDP is too much or too little to spend on healthcare.
Defend your position using the concept of opportunity cost and highlight specific GDP expenditures that are impacted by healthcare expenditure (opportunity cost).
Sample Solution
The economic principle of opportunity cost states that when we choose one thing, we give up all the other things that we could have chosen. In other words, there is always a trade-off involved in our decisions.
Locate current GDP expenditures and express the percentages in a graph or a chart.
Full Answer Section
The following table shows the current GDP expenditures in the United States, expressed as percentages:
| Category |
Percentage |
| Personal consumption expenditures |
69.0% |
| Gross private investment |
16.0% |
| Government spending |
17.0% |
| Net exports |
-2.0% |
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The graph below shows the same information in a graphical format:
Opens in a new windowen.wikipedia.org
pie chart showing the current GDP expenditures in the United States
Explain whether spending 17.4% of GDP is too much or too little to spend on healthcare.
Whether spending 17.4% of GDP is too much or too little to spend on healthcare is a complex question with no easy answer. There are many factors to consider, such as the quality of healthcare, the health of the population, and the economic resources available.
Some people argue that spending 17.4% of GDP on healthcare is too much, and that these resources could be better used elsewhere, such as on education or infrastructure. Others argue that spending 17.4% of GDP on healthcare is not enough, and that the government should do more to ensure that everyone has access to quality healthcare.
Ultimately, the decision of whether or not 17.4% of GDP is too much or too little to spend on healthcare is a political one. There is no right or wrong answer, and the best solution will vary depending on the specific circumstances of each country.
Defend your position using the concept of opportunity cost and highlight specific GDP expenditures that are impacted by healthcare expenditure (opportunity cost).
I believe that spending 17.4% of GDP on healthcare is too much. This is because there are other important areas, such as education and infrastructure, that could benefit from these resources. Additionally, the high cost of healthcare is a burden on many families and businesses.
The opportunity cost of spending 17.4% of GDP on healthcare is the other things that we could have done with those resources. For example, we could have spent more money on education, which would have helped to improve the quality of education and make it more accessible to everyone. We could have also spent more money on infrastructure, which would have created jobs and improved the quality of life for everyone.
In addition to education and infrastructure, there are many other areas that could benefit from the resources that are currently being spent on healthcare. For example, we could spend more money on research and development, which would help to create new technologies and improve the quality of life for everyone. We could also spend more money on social programs, which would help to reduce poverty and inequality.
I believe that we need to find a way to reduce the cost of healthcare so that we can free up resources to spend on other important areas. This will require a combination of reforms, such as increased competition, more transparency, and better coordination of care.