Chapter 16.1, Problem 1R

To determine

To evaluate: the significance of public works and Medicare.

Explanation of Solution

Public works are a wide category of government-funded and built infrastructure programs for purposes of recreation, education, and health and safety in the general community. These include public buildings for example, schools, hospitals, municipal buildings, transport networks such as roads, bridges, railways, dams, airports, ports, public areas like town parks, libraries, malls, public utilities like water supply and storage, sewage treatment, electric grid, and other, typically long-term, physical services and assets.

About one in two older Americans had no health insurance until Medicare, and faced a dark future if they became severely ill. Their options often included wiping out their savings, taking their children's money, getting welfare or doing it carelessly. Medicare offers a fixed amount of coverage for those who otherwise would not be able to afford it. And it helps isolate users from rising health-care costs. Those participating in the system will still pay thousands of dollars a year for health insurance, but they have far greater access to health care than they did when the system existed.

Economics Concept Introduction

Introduction: Since the advent of government as an important force in directing social and economic growth, governmental roles have grown tremendously in all modern states. State has a wide array of obligations in command economy countries for multiple forms of economic behavior.