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Terms in Health Care Industry

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Economic Terms in the Health Care Industry
Nicole Hunter
HCS/440 Economics: The Financing of Health Care
August 27, 2012
Kristin McFarland, MSA, AASPR

Economic Terms in the Health Care Industry
In this paper the history of economics will be discussed and how economics pertains to today’s health care world. Understanding terms that are used in economics can help with better understanding this subject. We will discuss terms such as economics, supply and demand, macroeconomics, microeconomics, elasticity, inelasticity, and GDP. Supply and demand will also be researched further and the different issues that it can apply to in the health care industry.
Economics
Economics is a science that focuses on distribution, production, and consumption of services and goods. Resources that can be used include talent and time available, buildings, land, knowledge, and equipment. Knowledge of how to use all of these resources to create a successful products and services is also useful in economics. Some choices that are made in economics are, just how much time to dedicate, how much money to save, how much money to save, combining of resource, and the role of the government.
Supply and Demand
The price of a commodity is the relationship between supply and demand. Supply and demand is essentially the backbone of the economy. Demand refers to the quantity of products and services that buyers wants and are willing to buy within a certain price range. Supply is how much can be offered to the buyer. In supply a certain price is determined and how much goods can be produced for that amount. The price is ultimately a reflection of supply and demand.
Macroeconomics
Macroeconomics is another branch of economics it deals with a wide and general area of the economy. A larger picture is examined here to figure out a way to make all these decisions come together. It answers

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