1. If health care is provided free, the demand is likely to be high. How is this high demand likely to be dealt with by the NHS? Is this a good way of dealing with the issue?

2. Go through each of the market failings identified in this box. In each case consider what alternative policies are open to a government to tackle them. What are the advantages and disadvantages of these alternatives?

3. Does the provision of free health care mean that it needs to be publicly produced? What would be the advantages, and disadvantages, of private provision?