Question 1               (500 words, 10 marks)


Briefly outline the trend in take-up of private health insurance in Australia over the last few decades. What are the likely factors that contribute to the growth? Evaluate the following statement from an economic perspective, “Private health insurance- the preserve of the rich- why on earth should they receive a subsidy?”


Question 2               (500 words, 10 marks)


Evaluate the following statement from an economic perspective, “Health care and asparagus- two different markets but the same economic tools of analysis and similar key questions apply.” What differentiates health care from other markets?



Question 3               (500 words, 10 marks)


Earlier this year the Australian Federal Government indicated its intention to introduce an up-front fee payable by customers visiting bulk-billing doctors. Through the use of basic economic principles, demonstrate the resulting market shifts that would occur and use theory to discuss the potential impact on equity.



Question 4               (750 words, 15 marks)


Smoking is good for no-one. Evaluate this statement from an economic perspective. Explain the relevance of elasticity of demand to the issue of smoking. What government interventions might be effective in reducing smoking behavior? Discuss. (Please see relevant short media article for some inspiration attached)



Question 5               (750 words, 15 marks)


Watch the video- The price of life


In reality is there a price placed on human life?  Explain the ethical / moral issues associated with placing a price on life. Is it a necessary evil? Evaluate from an economic perspective.


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