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Production Possibilities Curve
                          50



                          40


   Maternity
                          30
    Care

                          20



                          10



                           0
                               0    10    20    30     40       50
                                               Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50



                          40


   Maternity
                          30
    Care

                          20



                          10



                           0
                               0    10    20    30     40       50
                                               Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50
                                   Bows out due to opportunity costs

                          40


   Maternity
                          30
    Care

                          20



                          10



                           0
                               0      10        20        30           40   50
                                                       Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50
                                   Bows out due to opportunity costs

                          40


   Maternity
                          30
    Care

                          20



                          10



                           0
                               0      10        20        30           40   50
                                                       Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50
                                   Bows out due to opportunity costs

                          40


   Maternity
                          30
    Care

                          20



                          10



                           0
                               0      10        20        30           40   50
                                                       Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50
                                   Bows out due to opportunity costs

                          40


   Maternity
                          30
    Care

                          20



                          10



                           0
                               0      10        20        30           40   50
                                                       Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50
                                   Bows out due to opportunity costs

                          40


   Maternity
                          30
    Care

                          20



                          10
                                   Inefficient

                           0
                               0       10       20        30           40   50
                                                       Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50
                                   Bows out due to opportunity costs

                          40


   Maternity
                          30
    Care

                          20



                          10
                                   Inefficient

                           0
                               0       10       20        30           40   50
                                                       Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50
                                   Bows out due to opportunity costs

                          40
                                                                            Not possible
                                                                            with current
   Maternity                                                                 resources
                          30
    Care

                          20



                          10
                                   Inefficient

                           0
                               0       10       20        30           40         50
                                                       Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50
                                   Bows out due to opportunity costs

                          40
                                                                            Not possible
                                                                            with current
   Maternity                                                                 resources
                          30
    Care

                          20



                          10
                                   Inefficient

                           0
                               0       10       20        30           40         50
                                                       Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50
                                   Bows out due to opportunity costs

                          40
                                                                            Not possible
                                                                            with current
   Maternity                                                                 resources
                          30
    Care

                          20



                          10
                                   Inefficient

                           0
                               0       10       20        30           40         50
                                                       Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50
                                   Bows out due to opportunity costs

                          40
                                                                            Not possible
                                                                            with current
   Maternity                                                                 resources
                          30
    Care

                          20



                          10
                                   Inefficient

                           0
                               0       10       20        30           40         50
                                                       Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50
                                   Bows out due to opportunity costs

                          40
                                                                            Not possible
                                                                            with current
   Maternity                                                                 resources
                          30
    Care

                          20



                          10
                                   Inefficient

                           0
                               0       10       20        30           40         50
                                                       Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50
                                   Bows out due to opportunity costs

                          40
                                                                            Not possible
                                                                            with current
   Maternity                                                                 resources
                          30
    Care

                          20



                          10
                                   Inefficient

                           0
                               0       10       20        30           40         50
                                                       Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50
                                   Bows out due to opportunity costs

                          40
                                                                            Not possible
                                                                            with current
   Maternity                                                                 resources
                          30
    Care

                          20



                          10
                                   Inefficient

                           0
                               0       10       20        30           40         50
                                                       Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50
                                   Bows out due to opportunity costs

                          40
                                                                            Not possible
                                                                            with current
   Maternity                                                                 resources
                          30
    Care

                          20



                          10
                                   Inefficient

                           0
                               0       10       20        30           40         50
                                                       Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50



                          40


   Maternity
                          30
    Care

                          20



                          10



                           0
                               0    10    20    30     40       50
                                               Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50



                          40


   Maternity
                          30
    Care

                          20



                          10



                           0
                               0    10    20    30     40       50
                                               Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50



                          40
                                                     New innovation
                                                       expands
   Maternity                                          possibilities
                          30
    Care

                          20



                          10



                           0
                               0    10    20    30      40      50
                                               Geriatric Care

Monday, February 11, 13
Production Possibilities Curve
                          50



                          40
                                                     New innovation
                                                       expands
   Maternity                                          possibilities
                          30
    Care

                          20



                          10



                           0
                               0    10    20    30      40      50
                                               Geriatric Care

Monday, February 11, 13
Health
                             versus
                          Medical Care


Monday, February 11, 13
Medical Care
                     does not guarantee
                            Health


Monday, February 11, 13
Health and Age



      Health




                          0   10   20   30   40   50    60   70   80   90   100
                                                  Age

Monday, February 11, 13
Health and Age



      Health




                          0   10   20   30   40   50    60   70   80   90   100
                                                  Age

Monday, February 11, 13
Health and Age

                              Improve Prenatal Care



      Health




                          0       10     20     30    40   50    60   70   80   90   100
                                                           Age

Monday, February 11, 13
Health and Age

                              Improve Prenatal Care



      Health




                          0       10     20     30    40   50    60   70   80   90   100
                                                           Age

Monday, February 11, 13
Health and Age

                              Improve Prenatal Care



      Health                                                               Improve Maturing
                                                                                Care




                          0       10     20     30    40   50    60   70     80     90    100
                                                           Age

Monday, February 11, 13
Health and Age

                              Improve Prenatal Care



      Health                                                               Improve Maturing
                                                                                Care




                          0       10     20     30    40   50    60   70     80     90    100
                                                           Age

Monday, February 11, 13
Health and Medical Costs
        Health




                               Medical Costs

Monday, February 11, 13
Health and Medical Costs
                             Diminishing Marginal Utility
        Health




                                Medical Costs

Monday, February 11, 13
Health and Medical Costs
                             Diminishing Marginal Utility
        Health




                                Medical Costs

Monday, February 11, 13
Health and Medical Costs
                             Diminishing Marginal Utility
        Health




                                Medical Costs

Monday, February 11, 13
Health and Medical Costs
                             Diminishing Marginal Utility
        Health




                                Medical Costs

Monday, February 11, 13
Health and Medical Costs
                             Diminishing Marginal Utility
        Health




                                Medical Costs

Monday, February 11, 13
Health and Medical Costs
                             Diminishing Marginal Utility
        Health




                                Medical Costs

Monday, February 11, 13
Health and Medical Costs
                             Diminishing Marginal Utility
        Health




                Large
                Gain




                                Medical Costs

Monday, February 11, 13
Health and Medical Costs
                             Diminishing Marginal Utility
        Health




                Large
                Gain




                                Medical Costs

Monday, February 11, 13
Health and Medical Costs
                             Diminishing Marginal Utility
        Health




                Large
                Gain




                                Medical Costs

Monday, February 11, 13
Health and Medical Costs
                             Diminishing Marginal Utility
        Health




                Large           Spent the
                Gain
                                  same
                                 amount




                                Medical Costs

Monday, February 11, 13
Health and Medical Costs
                             Diminishing Marginal Utility
        Health




                Large           Spent the
                Gain
                                  same
                                 amount




                                Medical Costs

Monday, February 11, 13
Health and Medical Costs
                             Diminishing Marginal Utility
        Health

                Small
                Gain




                Large           Spent the
                Gain
                                  same
                                 amount




                                Medical Costs

Monday, February 11, 13
Health and Medical Costs
                             Diminishing Marginal Utility
        Health

                Small
                Gain




                Large           Spent the       What gives
                Gain
                                  same            most
                                 amount          health?




                                Medical Costs

Monday, February 11, 13

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368 lecture 3

  • 1. Production Possibilities Curve 50 40 Maternity 30 Care 20 10 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 2. Production Possibilities Curve 50 40 Maternity 30 Care 20 10 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 3. Production Possibilities Curve 50 Bows out due to opportunity costs 40 Maternity 30 Care 20 10 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 4. Production Possibilities Curve 50 Bows out due to opportunity costs 40 Maternity 30 Care 20 10 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 5. Production Possibilities Curve 50 Bows out due to opportunity costs 40 Maternity 30 Care 20 10 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 6. Production Possibilities Curve 50 Bows out due to opportunity costs 40 Maternity 30 Care 20 10 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 7. Production Possibilities Curve 50 Bows out due to opportunity costs 40 Maternity 30 Care 20 10 Inefficient 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 8. Production Possibilities Curve 50 Bows out due to opportunity costs 40 Maternity 30 Care 20 10 Inefficient 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 9. Production Possibilities Curve 50 Bows out due to opportunity costs 40 Not possible with current Maternity resources 30 Care 20 10 Inefficient 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 10. Production Possibilities Curve 50 Bows out due to opportunity costs 40 Not possible with current Maternity resources 30 Care 20 10 Inefficient 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 11. Production Possibilities Curve 50 Bows out due to opportunity costs 40 Not possible with current Maternity resources 30 Care 20 10 Inefficient 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 12. Production Possibilities Curve 50 Bows out due to opportunity costs 40 Not possible with current Maternity resources 30 Care 20 10 Inefficient 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 13. Production Possibilities Curve 50 Bows out due to opportunity costs 40 Not possible with current Maternity resources 30 Care 20 10 Inefficient 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 14. Production Possibilities Curve 50 Bows out due to opportunity costs 40 Not possible with current Maternity resources 30 Care 20 10 Inefficient 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 15. Production Possibilities Curve 50 Bows out due to opportunity costs 40 Not possible with current Maternity resources 30 Care 20 10 Inefficient 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 16. Production Possibilities Curve 50 Bows out due to opportunity costs 40 Not possible with current Maternity resources 30 Care 20 10 Inefficient 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 17. Production Possibilities Curve 50 40 Maternity 30 Care 20 10 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 18. Production Possibilities Curve 50 40 Maternity 30 Care 20 10 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 19. Production Possibilities Curve 50 40 New innovation expands Maternity possibilities 30 Care 20 10 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 20. Production Possibilities Curve 50 40 New innovation expands Maternity possibilities 30 Care 20 10 0 0 10 20 30 40 50 Geriatric Care Monday, February 11, 13
  • 21. Health versus Medical Care Monday, February 11, 13
  • 22. Medical Care does not guarantee Health Monday, February 11, 13
  • 23. Health and Age Health 0 10 20 30 40 50 60 70 80 90 100 Age Monday, February 11, 13
  • 24. Health and Age Health 0 10 20 30 40 50 60 70 80 90 100 Age Monday, February 11, 13
  • 25. Health and Age Improve Prenatal Care Health 0 10 20 30 40 50 60 70 80 90 100 Age Monday, February 11, 13
  • 26. Health and Age Improve Prenatal Care Health 0 10 20 30 40 50 60 70 80 90 100 Age Monday, February 11, 13
  • 27. Health and Age Improve Prenatal Care Health Improve Maturing Care 0 10 20 30 40 50 60 70 80 90 100 Age Monday, February 11, 13
  • 28. Health and Age Improve Prenatal Care Health Improve Maturing Care 0 10 20 30 40 50 60 70 80 90 100 Age Monday, February 11, 13
  • 29. Health and Medical Costs Health Medical Costs Monday, February 11, 13
  • 30. Health and Medical Costs Diminishing Marginal Utility Health Medical Costs Monday, February 11, 13
  • 31. Health and Medical Costs Diminishing Marginal Utility Health Medical Costs Monday, February 11, 13
  • 32. Health and Medical Costs Diminishing Marginal Utility Health Medical Costs Monday, February 11, 13
  • 33. Health and Medical Costs Diminishing Marginal Utility Health Medical Costs Monday, February 11, 13
  • 34. Health and Medical Costs Diminishing Marginal Utility Health Medical Costs Monday, February 11, 13
  • 35. Health and Medical Costs Diminishing Marginal Utility Health Medical Costs Monday, February 11, 13
  • 36. Health and Medical Costs Diminishing Marginal Utility Health Large Gain Medical Costs Monday, February 11, 13
  • 37. Health and Medical Costs Diminishing Marginal Utility Health Large Gain Medical Costs Monday, February 11, 13
  • 38. Health and Medical Costs Diminishing Marginal Utility Health Large Gain Medical Costs Monday, February 11, 13
  • 39. Health and Medical Costs Diminishing Marginal Utility Health Large Spent the Gain same amount Medical Costs Monday, February 11, 13
  • 40. Health and Medical Costs Diminishing Marginal Utility Health Large Spent the Gain same amount Medical Costs Monday, February 11, 13
  • 41. Health and Medical Costs Diminishing Marginal Utility Health Small Gain Large Spent the Gain same amount Medical Costs Monday, February 11, 13
  • 42. Health and Medical Costs Diminishing Marginal Utility Health Small Gain Large Spent the What gives Gain same most amount health? Medical Costs Monday, February 11, 13