Why is health considered a consumption good and a form of human capital?
What will be an ideal response?
Health is considered a consumption good because it requires costly investment for future payoff—healthy individuals live longer and better lives. Health also contributes to increased worker productivity. Therefore, health is a both a consumption good as well as a form of human capital that allows people to increase their lifetime production.
A-head: ECONOMICS OF HEALTH
Concept:Valuing Health
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While in school, Kiki spends 20 hours a week as a computer programmer for Microsoft and studies 30 hours a week
A) Kiki is classified as a full-time worker, working 50 hours a week. B) Kiki is classified as a part-time worker, working 30 hours a week. C) Kiki is classified as a part-time worker, working 20 hours a week. D) Because Kiki is a student, she is not classified as working. E) Because Kiki is a student, she is classified as a full-time worker, working 20 hours a week at a paid job.
Money as a medium of exchange I. Facilitates the exchange of goods II. Reduces the incentive to barter
A) I only B) II only C) Both I and II D) Neither I nor II