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NHS Spending In The UK

Decent Essays
From the text, what parts are positive statements and which are normative? Explain your answer. From the text, the positive statements are the statements that can be prove right or wrong, through the use of economic data. An example of this in the text would be that “NHS spending in the UK exceeds £110 billion”. This shows the use of positive statements as it makes a point that can be proved right, or wrong essentially, through the use of economic data. By looking at the financial spending, it can be proved whether or not the NHS in the UK has actually exceeded this mark. From the text, the normative statements are the statements that express judgement or an opinion, of which can be debated but not proved right or wrong. An example of this in the text would be that “The problem with such schemes is that it would increase business costs – possibly reducing employment”. This shows the use of normative…show more content…
The basic economic problem is that there are limited factors of production but unlimited wants and needs. The text relates to this as the NHS struggles to keep up with the demands of the population, while on a limited budget. With constant admittances, new staff having to be trained, new technologies to be bought, limited resources, treatments and many more expenses, choices have to be made as to how to use their money. The basic economic problem is all about scarcity and choice. While spending in the UK exceeds £110 billion, requirements are not being met for the NHS, and this poses problems. The NHS must try to allocate scarce resources in order to meet the unlimited wants and needs. But this means that choices must be made. And with the correct reasoning, a choice that will provide the lowest opportunity cost. If they decide to devote more resources into one area of investment e.g. recruitment and training of new staff, then another area of investment e.g. new equipment, will have less
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