Assignment : Economics For Managers

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MPE781-Assignment Economics for Managers Mingzhe Zhou Student Number: 214373421 01/08/2015 Question 1: In your own words, summarize the article, “Gov’t moves to sell Medibank Private,” by Jim Mcllroy, April 9, 2014. In particular, what are the main messages of the article? Answer: According to the article “Gov’t moves to sell Medibank Private”, privatization push of Medibank has certainly been on the Australian government’s agenda on March 26th 2014, which would result in billions public assets privatization. Although the government proposed to use the sale value of Medibank assets for public infrastructures investment, and selling Medibank could reduce federal budget, this privatization progress still met with many oppositions. The opponents believed that Medibank Private would not be able to control costs and outcomes, which would lead to an expensive and inefficient health insurance system to the public. Meanwhile, as the opposite of Medibank Private, the Socialist Alliance deemed that private health insurance in Australia should be ironed out, so Medibank would be able to extend the coverage of health care, and the universal health care system would benefit all the public. The Bob Hawke Labor government indicated that in 1984, health system in Australia consisted of two parts, were private health insurance and the public Medibank system, which provided identical insurance service to the public. Since there are numerous suppliers and
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