Chapter 14, Problem 1QAP

To determine

The reasons for health care expenses in the United States being higher than that of other countries.

Explanation of Solution

The medical care expenses in the United States are being fueled up by a number of reasons, making the country the highest spender of medical care in the world. Firstly, the population of USA being high is seen as the key reason for the above. The country’s population is about 40 times the population of Switzerland. The figures of France and the United Kingdom account for just one fifth of America. Further, the drug prices there being very high is another reason why the medical care spending is so high. On the other hand, the salaries paid to medical professionals such as doctors, nurses as well as medical researchers being higher, when compared with that of other nations is definitely instrumental in accelerating the figures. Administrative procedures’ being costly is another reason that contributes to the above.

Economics Concept Introduction

Introduction:

Comparisons of medical care expenses among various nations around the globe have been underway for quite a long time. This is done by various international bodies such as the world health organization in guiding nations in policy making et cetera. Many of these comparisons have brought into light that the medical care spending in the United States is higher than that of other nations.